Both parties signed an MoU to develop renewable energy solutions for Essar Group's Green Steel Arabia project in Saudi Arabia as well as potential future projects
Essar Group on Monday signed a pact with solar PV firm Desert Technologies for developing renewable energy solutions for the Indian conglomerate's KSA Green Steel Arabia project.
"Both parties signed a Memorandum of Understanding (MoU) to develop renewable energy solutions for Essar Group's Green Steel Arabia (GSA) project in the Kingdom of Saudi Arabia (KSA) as well as potential future projects which will put Saudi Arabia on the map, as a pioneering country in Green Steel production and green energy generation," the company said in a statement.
Through this partnership, DT and Essar will develop solutions for renewable energy generation and storage for Essar's flat steel complex in the KSA which is the first green steel project in the Gulf region and will also explore opportunities for other potential projects.
Essar is investing US$ 4.5 billion in building a 4 million tonne per annum integrated steel plant in Ras Al-Khair, Saudi Arabia. Essar's GSA project is poised to be the largest integrated flat steel complex across entire MENA (Middle East & North Africa) region and first green steel project aiming to set the global benchmark in the reduction of CO2. This is one of the largest investments made by an Indian company in KSA.
Essar recently signed letters of intent (LoIs) with Vale International, a wholly-owned subsidiary of Vale SA, and Bahrain Steel, a subsidiary of Foulath, to secure 100 per cent raw material supply of iron ore feed for its Saudi Steel plant. The project is set to start production in 2027.
Based in Saudi Arabia, and operating in more than 25 countries, Desert Technologies has a proven track record as a PV (photovoltaic) developer, investor, EPC and O&M contractor, PV solar panel manufacturer, and energy storage systems integrator.
Commenting on the occasion, DT Investments chief executive officer Khaled Sharbatly said, the MoU "signifies our long-term commitment to meet the growing demand for renewable energy solutions; especially in the KSA. Its solutions in renewable energy sector, price competitivity and low carbon footprint solutions will further boost the growing low CO2 emission steel industry."
Naushad Ansari, Country Head for Essar Group in KSA, commented: "Essar is currently looking at investing about US$ 4.5 billion in setting up an integrated steel plant in Ras Al Khair, Saudi Arabia. This partnership with Desert Technologies will help us access green energy and carbon free energy storage solutions; thereby strengthening our commitment towards low carbon footprint.
"We are committed to continue to enhance KSA's local content and help local businesses to grow with us. This MoU also reconfirms Essar’s commitment to long-term investments in KSA and development of green and sustainable strategy".
The Essar project is set to be the region's first green steel project aiming to set the global benchmark in reduction of CO2. The project will have a direct reduced iron (DRI) capacity of 5 million tonne per annum, comprising two modules of 2.50 million tonne each, and 4.0 million tonne hot strip capacity, as well as 1 million tonne of cold rolling capacity along with galvanizing and tin plate lines.
In line with the Kingdom's ongoing demand for steel products and the targets set for Vision 2030, the facility will cater to all major steel consuming industries, including construction, oil & gas, automotive, packaging and general engineering.