Turkish steelmaker to invest $3.2 billion in green transition by 2030
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Turkish steel producer Erdemir intends to invest a combined $3.2 billion in its green transition by 2030, aiming for a 25% reduction in emissions by that target year, according to Serdar Basoglu, the CFO of OYAK Mining Metallurgy.
Basoglu, while presenting emission reduction plans for both Erdemir and Isdemir, entities within the OYAK group, stated that Erdemir plans to finance over 70% of this total investment through foreign loans.
He mentioned that the consideration of eurobonds was under review.
The anticipated growth in global steel demand by 2050 is 40%, while concurrently, emissions must see a reduction of 95%.
The predominant method for steel production today is the blast furnace-basic oxygen furnace (BF-BOF) process, known for its cost efficiency.
However, emerging steel production technologies like hydrogen-direct reduced iron-electric arc furnaces (H2-DRI-EAF) and carbon capture and storage (CCS) are undergoing development and scaling, particularly in Europe.
Pilot projects involving these technologies are anticipated to offer valuable insights into how businesses can navigate transition risks amid the accelerating decarbonization spreading globally.
Hydrogen, generated from renewable energy sources like solar and wind power, enables the production of green steel with zero carbon emissions.
Opting for electric arc furnaces instead of blast furnaces helps in avoiding fossil fuels. Electric arc furnaces, known for their efficiency, can be powered by renewable energy sources.
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