Essar, Desert Tech Sign Pact For Renewable Energy Solutions By CIOTechOutlook Team

Essar, Desert Tech Sign Pact For Renewable Energy Solutions

CIOTechOutlook Team | Monday, 11 September 2023, 12:03 IST

To create renewable energy options for the Indian conglomerate's KSA Green Steel Arabia project, Desert Technologies and Essar Group entered into a partnership. "Both parties signed a Memorandum of Understanding (MoU) to develop renewable energy solutions for Essar Group's Green Steel Arabia (GSA) project in the Kingdom of Saudi Arabia (KSA) 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 company added.

Since Essar's flat steel complex in KSA is the first green steel project in the Gulf region, DT and Essar will work together to create solutions for renewable energy generation and storage for this project as well as other possible ones. Building a 4 million tonne per year integrated steel plant in Ras Al-Khair, Saudi Arabia, will cost USD 4.5 billion, according to Essar. The GSA project by Essar, which aims to be the first green steel project and the largest integrated flat steel complex in the MENA (Middle East and North Africa) area, will set a new standard for CO2 reduction globally. One of an Indian company's greatest investments in Saudi Arabia is this one.

Recently, Essar inked letters of intent (LoI) with Bahrain Steel, a subsidiary of Foulath, and Vale International, a fully owned subsidiary of Vale SA, to ensure a continuous supply of iron ore feed for its Saudi Steel plant. Production on the project is expected to begin in 2027. With headquarters in Saudi Arabia and operations in more than 25 nations, Desert Technologies is a reputable developer, investor, EPC and O&M contractor, PV solar panel manufacturer, and integrator of energy storage systems.

Commenting on the occasion, DT Investments chief executive officer Khaled Sharbatly said, the MoU "signifies our long-term commitment to meet the growing demand for renewable energy solutions; especially in the KSA. Its solutions in renewable energy sector, price competitivity and low carbon footprint solutions will further boost the growing low CO2 emission steel industry."