Essar Group and Desert Technologies sign MoU for renewable energy solutions

A Memorandum of Understanding (MOU) has been signed between Desert Technologies (DT), an independent holding company for solar PV and smart infrastructure, and Essar Group to jointly develop renewable energy options for Essar Group's Green Steel Arabia (GSA) project in the Kingdom of Saudi Arabia (KSA) as well as potential future projects. At the G20 conference, Desert Technologies and Essar Group signed an MOU.

For Essar's Flat Steel Complex in KSA, the first green steel project in the GCC region, the firms stated they will create solutions for renewable energy generation and storage through this relationship. They also said they will look into options for additional possible projects.

"Desert Technologies' MOU with Essar demonstrates our long-term commitment to supplying renewable energy solutions to satisfy the expanding demand, particularly in the KSA. The increasing low CO2 emission steel business will be further boosted by its solutions in the renewable energy sector, pricing competitiveness, and low carbon footprint solutions, according to Khaled Sharbatly, chief executive officer of DT Investments.

Desert Technologies, a Saudi Arabia-based company that operates in more than 25 countries, has a solid track record as a PV developer, investor, EPC and O&M contractor, PV solar panel maker, and integrator of energy storage systems. In Ras Al Khair, Saudi Arabia, Essar is considering spending about $4.5 billion to build an integrated steel mill. Through this collaboration with Desert Technologies, the business will have access to renewable energy sources and carbon-free energy storage options, further solidifying its commitment to a low carbon footprint.

We pledge to keep improving KSA's local content and supporting regional companies as they expand alongside us. This MOU also reaffirms Essar's dedication to making long-term investments in Saudi Arabia and to the creation of a green and sustainable strategy, according to Naushad Ansari, Essar Group's Country Head in Saudi Arabia.

The Essar project is slated to be the first green steel project in the area, with the goal of setting a precedent for CO2 reduction on a global scale. The project will be capable of producing 5.0 mtpa of direct reduction iron (DRI), divided into two modules that can each produce 2.50 mtpa, 4.0 mtpa of hot strip, 1.0 mtpa of cold rolling, along with galvanising and tin plate lines. The plant will serve all significant steel-consuming industries, including construction, oil & gas, automotive, packaging, and general engineering, in keeping with the Kingdom's ongoing demand for steel products and the goals established for Vision 2030.