Essar Group Considering Setting up $4.5 Billion Steel Project in Saudi Arabia

The multi-national conglomerate Essar Group in Saudi Arabia is exploring the possibility of investing about $4.5 billion in setting up an integrated steel plant in Ras Al Khair in Saudi Arabia, Naushad Ansari, Country Head for Essar Group, said.

The Essar project is set to be the region’s first Green Steel project – KSA Green Steel Arabia Steel Plant – 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 2.5 mtpa each, and 4 mtpa hot strip capacity, as well as 1 million tonnes 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 & General Engineering, he said.

MoU Signed

Earlier in the day, Saudi Arabia’s Desert Technologies (DT), an independent solar PV and smart infrastructure holding company, entered into a long-term partnership with Essar Group.

The two companies signed a Memorandum of Understanding (MoU) to develop renewable energy solutions for Essar Group’s Green Steel Arabia (GSA) project in the Saudi Arabia 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 MOU was executed between Desert Technologies and Essar Group in the G20 summit on 11 September 2023 at New Delhi, India.

Through this partnership, DT and Essar will develop solutions for renewable energy generation and storage for Essar’s Flat Steel Complex in Saudi Arabia which is the first green steel project in the GCC region and will also explore opportunities for other potential projects.

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.

Dt Investments CEO Khaled Sharbatly said that the MoU with Essar signified their long-term commitment to meet the growing demand for renewable energy solutions especially in the Kingdom.

“Its solutions in renewable energy sector, price competitivity and low Carbon footprint solutions will further boost the growing low CO2 emission steel industry. We are proud to collaborate with Essar Group to support their pioneering project for setting up the first green steel project in Saudi Arabia,” he added.

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, Ansari explained.

“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 the KSA and development of green and sustainable strategy,” he added.

About Essar

Essar Group, with revenue totalling $15 billion has a 50+ years track record of invest in building world-class assets across Energy, Metals & Mining, Infrastructure and Technology Sectors.

About Desert Technologies

Desert Technologies (DT) is an independent solar PV and smart infrastructure holding company focused on manufacturing and sustainable investments. Based in Saudi Arabia and operating in more than 25 countries, DT has a proven track record as a PV developer, investor, EPC and O&M contractor, PV solar panel manufacturer, and energy storage systems integrator.