Gold
Desert Technologies, Essar Group partner for Green Steel Project
13 Sep 2023 CW Team
Desert Technologies (DT), an independent company specialising in solar photovoltaic (PV) and smart infrastructure, has entered into a Memorandum of Understanding (MOU) with the Essar Group. This partnership aims to develop renewable energy solutions for Essar Group's ambitious Green Steel Arabia (GSA) project in the Kingdom of Saudi Arabia (KSA), as well as explore potential collaborations on future projects.
The MOU was formalised during the G20 summit held, solidifying the commitment of Desert Technologies and Essar Group to this innovative venture.
Together, these two companies will focus on creating renewable energy generation and storage solutions specifically tailored for Essar's Flat Steel Complex in KSA. This complex represents a ground-breaking endeavour as the first green steel project in the GCC region. Moreover, the collaboration will involve the exploration of opportunities for additional projects in the renewable energy sector.
Khaled Sharbatly, Chief Executive Officer of DT Investments, emphasised the significance of this partnership, "Desert Technologies's MOU with Essar signifies our long-term commitment to meet the growing demand for renewable energy solutions, particularly in KSA. Its solutions in the renewable energy sector, competitive pricing, and low carbon footprint solutions will further enhance the growing low CO2 emission steel industry."
Desert Technologies, headquartered in Saudi Arabia and operating across more than 25 countries, boasts a strong track record as a PV developer, investor, engineering, procurement, and construction (EPC) contractor, PV solar panel manufacturer, and energy storage systems integrator.
Essar Group is currently exploring an investment of approximately $4.5 billion to establish an integrated steel plant in Ras Al Khair, Saudi Arabia. Through this collaboration with Desert Technologies, Essar gains access to green energy and carbon-free energy storage solutions, reinforcing its commitment to reducing its carbon footprint.
Naushad Ansari, Country Head for Essar Group in KSA, expressed their dedication to boosting local content and supporting the growth of local businesses. He stated, "This MOU also reaffirms Essar’s commitment to long-term investments in KSA and the development of a green and sustainable strategy."
The Essar project represents a significant milestone as the region's inaugural Green Steel project, with an ambitious goal of setting a global benchmark for CO2 reduction. The project will include a direct reduced iron (DRI) capacity of 5.0 million metric tons per annum (mtpa), consisting of two modules of 2.50 mtpa each, along with a 4.0 mtpa hot strip capacity and 1.0 million tonnes of cold rolling capacity, in addition to galvanizing and tin plate lines. Aligned with the Kingdom's increasing demand for steel products and the targets outlined in Vision 2030, the facility will serve major steel-consuming industries such as construction, oil and gas, automotive, packaging, and general engineering.
