The Sierra Club Iowa Chapter is asking state officials to include environmental protections, renewable energy requirements and local workforce commitments in an incentive agreement for a proposed $15 billion steel plant in southeast Iowa.
The environmental organization sent a letter Wednesday to Iowa Economic Development Authority Director Debi Durham outlining recommendations for the proposed Mesabi Metallics project. The authority is expected to consider a tax credit for the development.
President Donald Trump announced the steel mill project in late September. Iowa lawmakers subsequently returned to the Capitol for a special session and approved legislation allowing the Iowa Economic Development Authority to authorize tax credits of up to 10% of qualifying investments in rural counties. Gov. Kim Reynolds signed the legislation into law, doubling the previous tax credit cap available under the Major Economic Growth Attraction, or MEGA, program.
In its letter, the Sierra Club said the facility could become one of the country’s cleanest and most modern steel mills if its recommendations are incorporated into the incentive agreement.
The group’s proposals include requiring Mesabi Metallics to obtain or produce new renewable energy from sources such as wind, solar and geothermal power, as well as battery storage, to meet the facility’s electricity and heating needs. The organization also recommends working with Iowa utilities to prevent costs associated with new electricity generation or infrastructure upgrades from being passed on to utility customers.
Additional recommendations include using electric equipment where possible, adopting air pollution control technologies, requiring covered or zero-emission trucks and developing a plan to use green or geologic hydrogen.
Mesabi Metallics has described the proposed facility as a highly efficient and environmentally friendly manufacturing operation. According to the company’s announcement, the plant would use hot direct-reduced iron technology to convert iron ore mined in Minnesota into metallic iron, along with electric arc furnace technology to produce steel and recycle materials. The company says these processes would reduce energy use and emissions.
The Sierra Club is also asking for commitments to local hiring and protections for workers’ rights to organize unions. Mesabi Metallics has previously stated that it intends to use local vendors during construction to support additional economic activity in the region.
According to the company, the project is expected to create at least 1,750 full-time jobs once fully operational, with more than 6,000 jobs anticipated during construction.
Sierra Club Iowa Chapter Director Pam Mackey Taylor said the organization wants any state incentives to include written, enforceable commitments related to public health, pollution, employment and community benefits.
The Iowa Economic Development Authority had not responded to a request for comment Wednesday regarding the organization’s letter.
The proposed incentive agreement and the Sierra Club’s recommendations are part of the ongoing process surrounding the planned steel mill. The final terms of any agreement will determine which requirements, if any, are included as conditions of state financial incentives.
Sources: Sierra Club Iowa Chapter letter to the Iowa Economic Development Authority; Mesabi Metallics company announcement; Iowa Capital Dispatch reporting on the project announcement and legislation authorizing expanded tax incentives.
