Pacific Steel Group (PSG) has secured a US$200 million loan from Generate Capital, a sustainable infrastructure investment firm, to support the construction of its planned California micro-mill. 

The new micro-mill will convert locally sourced steel scrap into custom-length rebar.  

"This innovative project aligns with our objective to provide the highest-quality materials while lowering our environmental footprint," said Pacific Steel Group chief executive officer Eric Benson.

Generate Capital said the planned micro-mill will eliminate the need for roundtrip hauling of scrap and finished steel in and out of California, providing a transportation cost advantage and carbon emissions savings. 

“Leveraging on-site and nearby renewable energy, electrification, carbon capture and storage and a local supply chain, the new mill is expected to produce rebar with 85% fewer emissions compared to traditional methods, setting a new benchmark for sustainable steel production," the company said.