Essar signs an MoU with Desert Tech for green steel solutions in Saudi Arabia
Economy
5 min read
Indian multinational company Essar Global Fund limited has signed a memorandum of understanding (MoU) with the Desert Technologies (DT) of Saudi Arabia , to develop renewable energy solutions for the Indian firm's proposed Green Steel project in the Kingdom of Saudi Arabia.The MoU between the two companies was signed during the G20 summit meeting held in New Delhi on 9 September 2023.
Essar Global Fund which has interest in energy, infrastructure,mining ,oil and gas sector is planning to invest about $4.5 billion in setting up an integrated steel plant in Ras Al Khair, Saudi Arabia. The steel plant is expected to start production in 2027.
The proposed steel plant aims to be the largest integrated flat steel complex across the entire MENA (Middle East & North Africa) region and first green steel project in the Gulf Cooperation Council area .
Gulf Cooperation Council is a regional group of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
Role of Desert Technologies in the Project
- Desert Technologies is an independent solar photovoltaic (PV) and smart infrastructure holding company of Saudi Arabia.
- Through this partnership, DT and Essar will develop solutions for renewable energy generation and storage for Essar's flat steel complex in Saudi Arabia. This renewable energy will be used for production of steel at the proposed Essar steel complex in Saudi Arabia.
What is Green Steel ?
Green steel refers to the production of steel without the use of fossil fuels like carbon or furnace oils etc. Instead of fossil fuels, low-carbon energy sources such as hydrogen, natural gas ,coal gasification, or electricity are used for production of steels.
Why the need for Green steel?
- The Steel Industry is one of the major contributors to global warming . Majority of steel produced around the world is made in coal-fired blast furnaces.
- Use of coal ,a fossil fuel, releases large amounts of carbon dioxide into the atmosphere contributing to global warming.
- To reduce the carbon emission the government worldwide are encouraging the steel companies to use hydrogen or low carbon energy sources for production of steel.
Indian initiative in the field of Green Steel
- In India, the iron and steel industry’s contribution in total annual carbon dioxide production is around 12%. Globally the contribution of the iron ore and steel industry globally accounts for around 8 percent of total CO2 emissions on an annual basis.
- The Government of India has set a target of achieving net zero carbon emission by 2070. If India has to achieve that target then the Indian steel industry needs to reduce its emissions to net-zero by 2070.
- Anil Agarwal-owned Vedanta company has signed an agreement with IIT-Bombay to develop technology for producing green steel using hydrogen.
- Jindal Steel & Power Ltd (JSPL) plans to develop its Odisha plant into the largest and greenest facility in the world. The company claims to be the first steelmaker in the world to build coal gasification to produce steel using clean coal technologies.
Essar Global Fund
Headquarters : Mumbai
Chief Executive Officer :Prashant Ruia
audi Arabia.
