Essar Group said on Monday that it has signed a memorandum of understanding (MoU) to develop renewable energy (RE) solutions for Essar’s Green Steel Arabia (GSA) project in the Kingdom of Saudi Arabia (KSA).
The MoU was executed between Desert Technologies and Essar Group at the G20 summit on Monday at New Delhi. It will also explore potential future projects which will put Saudi Arabia on the map, as a pioneering country in green steel production and green energy generation.
“Through this partnership, DT and Essar will develop solutions for RE generation and storage for Essar’s flat steel complex in the KSA which is the first green steel project in the Gulf Cooperation Council (GCC) region and will also explore opportunities for other potential projects,” Essar Group said.
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Based in Saudi Arabia, and operating in more than 25 countries, Desert Technologies has a proven track record as a PV developer, investor, EPC and O&M contractor, PV solar panel manufacturer, and energy storage systems integrator, it added.
Essar’s 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 tonnes per annum (MTPA) comprising of two modules of 2.50 MTPA each, and 4 MTPA hot strip capacity, as well as 1 million tonnes (MT) of cold rolling capacity along with galvanising 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.
“Essar is currently looking at investing about $4.5 billion in setting up an integrated steel plant in Ras Al Khair, Saudi Arabia. This partnership with Desert Technologies will help us to access green energy and carbon free energy storage solutions; thereby strengthening our commitment towards low carbon footprint,” Country Head for Essar Group in KSA Naushad Ansari said.
DT Investments CEO Khaled Sharbatly said “Desert Technologies’s MoU with Essar signifies its long-term commitment to meet the growing demand for renewable energy solutions; especially in the KSA. It’s solutions in RE sector, price competitivity and low Carbon footprint solutions will further boost the growing low CO2 emission steel industry.”