Hybar, a new scrap metal recycling and steel production company, has announced that it successfully raised $700 million of debt and equity financing to build and operate a sustainable scrap metal recycling steel rebar mill.
The equity portion of the financing was led by TPG Rise Climate, the dedicated climate investing strategy of TPG's global impact investing platform TPG Rise, and Global Principal Partners, the investment entity used by Hybar's senior management team.
Of the $700 million raised, $470 million will be spent to build the rebar mill. The remainder of the financing will be used to start up and operate the mill and pay certain debt service costs during construction. The mill, which is expected to take 22 months to construct, is being built in northeast Arkansas on a 1,300-acre greenfield site with direct access to barge, rail and truck transportation options. The mill will produce a full complement of high-yielding rebar that will primarily be used in large infrastructure projects, including projects supported by the Infrastructure Investment and Jobs Act and the Inflation Reduction Act.
Hybar's mill technology, including the water treatment facility, is being supplied by SMS group. The substation is being supplied by Primetals Technologies. According to a company press release, Hybar's technology is designed to significantly reduce the amount of energy needed to produce rebar, especially when compared to other rebar mills in North America, many of which were built more than thirty years ago.
Hybar's sustainability focus has been a key factor in enabling the company to become the first steel company globally to be certified to issue Climate Bonds, which demonstrate compliance with the international Paris Agreement's greenhouse gas emissions targets.
"The Climate Bond certification aligns perfectly with Hybar's plan to offer our customers competitively priced rebar that is also the greenest rebar in the market."Dave Stickler, Hybar's chief executive officer
"The Climate Bond certification aligns perfectly with Hybar's plan to offer our customers competitively priced rebar that is also the greenest rebar in the market," said Dave Stickler, Hybar's chief executive officer.
Hybar's mill will be directly connected to an adjacent solar facility, allowing the company to intermittently run the mill on 100% renewable energy.