Bahrain Steel partners with Essar Group for Green Steel Initiative

21 Aug 2023 CW Team

Distinguished as the sole pellet producer within the Gulf Cooperation Council (GCC), Bahrain Steel holds a preeminent position as the primary provider of top-notch DR grade pellets to integrated steel producers across the region.

The Letter of Intent (LOI) signing ceremony took place on August 16, 2023, in Jubail, Saudi Arabia. Dilip George, Foulath Holding's Group CEO, expressed, "The LOI between Bahrain Steel and Essar for the annual supply of four million tonnes of DR grade pellets underpins our commitment to addressing the growing demand for DR pellets in the GCC's steel industry. We take pride in partnering with Essar Group to support their groundbreaking endeavor to establish Saudi Arabia's inaugural green steel project, aligning with the escalating emphasis on sustainable development in the region."

Naushad Ansari, Essar Group's Country Head in KSA, revealed that Essar plans to invest approximately $4.5 billion in the establishment of an integrated steel plant in Ras Al Khair, Saudi Arabia.

Pending the finalisation and signing of definitive contracts, this LOI secures 50 per cent of the raw material supply of iron ore pellets for the Saudi Steel Plant. Ansari noted, "If our plans unfold as envisioned, we anticipate commencing commercial production by the year 2027."

The Essar project marks a significant milestone as the region's inaugural Green Steel initiative, designed to establish a global standard for CO2 reduction. Encompassing a direct reduced iron (DRI) capacity of 5.0 million tonnes per annum (mtpa), the project comprises two modules, each capable of producing 2.50 mtpa, in addition to a hot strip capacity of 4.0 mtpa. The venture also encompasses 1.0 million tonnes of cold rolling capacity along with galvanising and tin plate lines.

Bahrain Steel, a subsidiary of Foulath based in Bahrain, has joined forces with Essar Group's KSA Green Steel Project to collaborate on the supply of iron ore pellets to the Green Steel Arabia (GSA) initiative. This strategic alliance will see Bahrain Steel providing an annual supply of four million tonnes of DR-grade pellets to Essar Group, as stated in an official communication.Distinguished as the sole pellet producer within the Gulf Cooperation Council (GCC), Bahrain Steel holds a preeminent position as the primary provider of top-notch DR grade pellets to integrated steel producers across the region.The Letter of Intent (LOI) signing ceremony took place on August 16, 2023, in Jubail, Saudi Arabia. Dilip George, Foulath Holding's Group CEO, expressed, The LOI between Bahrain Steel and Essar for the annual supply of four million tonnes of DR grade pellets underpins our commitment to addressing the growing demand for DR pellets in the GCC's steel industry. We take pride in partnering with Essar Group to support their groundbreaking endeavor to establish Saudi Arabia's inaugural green steel project, aligning with the escalating emphasis on sustainable development in the region.Naushad Ansari, Essar Group's Country Head in KSA, revealed that Essar plans to invest approximately $4.5 billion in the establishment of an integrated steel plant in Ras Al Khair, Saudi Arabia.Pending the finalisation and signing of definitive contracts, this LOI secures 50 per cent of the raw material supply of iron ore pellets for the Saudi Steel Plant. Ansari noted, If our plans unfold as envisioned, we anticipate commencing commercial production by the year 2027.The Essar project marks a significant milestone as the region's inaugural Green Steel initiative, designed to establish a global standard for CO2 reduction. Encompassing a direct reduced iron (DRI) capacity of 5.0 million tonnes per annum (mtpa), the project comprises two modules, each capable of producing 2.50 mtpa, in addition to a hot strip capacity of 4.0 mtpa. The venture also encompasses 1.0 million tonnes of cold rolling capacity along with galvanising and tin plate lines.