Essar Group & Desert Technologies sign MOU for developing renewable energy solutions
The MOU was executed between Desert Technologies and Essar Group in the G20 summit in 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 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.
Commenting on the occasion, Chief Executive Officer of DT Investments, Khaled Sharbatly, said: “Desert Technologies's 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 competition 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."
Naushad Ansari, Country Head for Essar Group in KSA, commented: “Essar is currently looking at investing about USD 4.5 billion in setting up an integrated steel plant in Ras Al Khair, Saudi Arabia. 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. We are committed to continuing 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."
The Essar project is set to be the region’s first Green Steel project aiming to set the global benchmark in the reduction of CO2. The project will have a direct reduced iron (DRI) capacity of 5.0 mtpa, comprising of two modules of 2.50 mtpa each and 4.0 mtpa hot strip capacity, as well as 1.0 million tonnes of cold rolling capacity along with galvanizing 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 and gas, Automotive, Packaging & General Engineering.