U.S. Steel closed on $63.4 million of Environmental Improvement Revenue Bonds to partly finance a low-emission, low-carbon electric arc furnace in Alabama. The Pittsburgh-based steelmaker is building the more environmentally friendly furnace for steelmaking at its Fairfield Works.

"Our first green bond is an important step forward for U. S. Steel in our drive toward more sustainable practices," U. S. Steel President and Chief Executive Officer David Burritt said. "This is doubly relevant for our new electric arc furnace, which recycles scrap steel as its primary feedstock and uses electricity for power. By partially funding the electric arc furnace, the green bond is helping advance our commitment to reduce greenhouse gas emissions intensity by 20 percent by 2030."

U.S. Steel secured the green bonds through The Industrial Development Board of the city of Hoover, Alabama. They have an interest rate of 6.375% and final maturity date of 2050.

The steelmaker, which operates the integrated mills Gary Works and Midwest Plant in Northwest Indiana, also is in the process of buying the Big River Steel mini-mill in Arkansas.