What do you do with a lot of hot air? Turn it into electricity. That's a plan proposed between Nucor Steel Company and Seattle City Light.

In West Seattle, out of a 3,000 degree furnace, comes red glowing steel that s shaped into rebar. Along with the rebar, the plant generates heat.

Nucor pays a whopping Seattle City Light bill, nearly $23 million for electricity. Now, City Light's biggest customer is hoping to cut a conservation deal by reusing its own hot air.

We're going to divert it through a heat exchanger. Bring it back in. We're going to harness some of that hot air energy to make electricity, said Nucor's Environmental Manager Bart Kale.

The heat, which pours out of the plant's stacks, will be reused to make more steel.

City Light will pay a million dollars, over three years, to the plant as an incentive.

What do City Light ratepayers get in return?

Ratepayers will benefit by have Nucor conserve because that is power that we don't have to produce or we don't have to buy, said City Light's Suzanne Hartman.

It will be the first project under the state's Energy Independence Act, designed to get more renewable energy and increase conservation.

If the project is approved by the Seattle City Council, along with putting out 20 million tons of steel, Nucor could save enough electricity to light 540 Seattle homes.

Nucor is the same steel mill that will melt down weapons collected in Seattle's gun buyback program.

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