Essar, Desert Tech sign pact for renewable energy solutions for Saudi steel project – EQ
Essar has been tying up the back end for its proposed Saudi steel plant, which is expected to start production in 2027
Desert Technologies (DT), an independent solar photovoltaic (PV) and smart infrastructure holding company has signed a memorandum of understanding (MoU) with the Essar group to develop renewable energy solutions for the Indian firm’s proposed Green Steel Arabia (GSA) project in the Kingdom of Saudi Arabia (KSA).
A statement said that the MoU was executed between Desert Technologies and Essar Group during the G20 summit on Monday in New Delhi.
Through this partnership, DT and Essar will develop solutions for renewable energy generation and storage for Essar’s flat steel complex in the KSA, which aims to be the first green steel project in the GCC region. The partnership will also explore opportunities for other potential projects.
Commenting, Naushad Ansari, country head for the Essar Group in KSA, said, “Essar is currently looking at investing about $4.5 billion in setting up an integrated steel plant in Ras Al Khair, Saudi Arabia. This partnership with Desert Technologies will help us access green energy and carbon-free energy storage solutions, thereby strengthening our commitment towards a low carbon footprint.”
“We are committed to continuing to enhance KSA’s local content and help local businesses grow with us. This MoU also reconfirms Essar’s commitment to long-term investments in the KSA and the development of green and sustainable strategy,” he added.
Khaled Sharbatly, chief executive officer of DT Investments, said, “Desert Technologies’ MoU with Essar signifies our long-term commitment to meet the growing demand for renewable energy solutions, especially in the KSA.”
“Its solutions in the renewable energy sector, price competitiveness, and low carbon footprint solutions will further boost the growing low CO2 emission steel industry,” he added.
Essar has been tying up the back end for its proposed Saudi steel plant, which is expected to start production in 2027. It recently signed letters of intent (LoIs) with Vale International, a wholly-owned subsidiary of Vale SA, and Bahrain Steel, a subsidiary of Foulath, to secure 100 per cent raw material supply of iron ore feed.
