Essar Ras Al-Khair steel plant

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Essar Ras Al-Khair steel plant is a direct reduced iron-electric arc furnace (DRI-EAF) announced steel plant in Ras Al-Khair, Eastern Province, Saudi Arabia.

Location

The map below shows the approximate location of the plant in Ras Al-Khair, Eastern Province, Saudi Arabia:

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  • Location: Ras Al-Khair, Industrial City, Eastern Province, Saudi Arabia
  • Coordinates (WGS 84): 27.544749, 49.208103 (approximate)

Background

The Essar Ras Al-Khair steel plant is an announced plant with an expected start date of 2025. In 2023, the company announced a partnership with Vale International to supply iron ore agglomerates for the plant. The Essar plant aims to be the first green steel initiatve in Saudi Arabia. It will consist of a direct reduced iron (DRI) capacity of 5.0 million tonnes per annum (mtpa), comprising two modules of 2.50 mtpa each. Furthermore, the project will include a hot strip capacity of 4.0 mtpa, along with 1.0 million tonnes of cold rolling capacity, as well as galvanizing and tin plate lines.[1]

Low-emissions/green steelmaking

This steel plant is associated with a green steel project tracked in the Green Steel Tracker. Details about the project are included below.

Table 1: Green Steel Project Details

All references for the above data are available in the Green Steel Tracker.
Project 1
Company Essar Global Fund Ltd
Location Ras Al-Khair, Saudi Arabia
Project name Green Steel Arabia (GSA)
Project website Not available
Project scale Full scale
Project status Announced
Year to be online 2027
Technology to be used NG-DRI
Technology details Based on gas but it would be ready to use green hydrogen when prices are viable
Iron production capacity (million tonnes per year) 5
Steel production capacity (million tonnes per year) 5
CO2 capture (million tonnes CO2 per year) Not applicable
Hydrogen generation capacity(MW) Not applicable
Investment size 4500
Partners Bahrain Steel
Date of announcement 2023-08-17

Plant Details

Table 2: General Plant Details

Plant status Announced date Construction date Start date
Announced[2][3] 2021-10[2] 2024[4] 2025[2]

Table 3: Ownership and Parent Company Information

Owner Owner company PermID Owner company GEM ID
Essar Global Fund Ltd[5] 5000026125 E100000000510

Table 4: Process and Products

Steel product category Steel products Main production equipment Detailed production equipment
semi-finished; finished rolled[6] slab; hot-rolled coil[6] DRI, EAF[5] 2 DRI plants, 2 EAF[7]

Table 5: Crude Steel Production Capacities (thousand tonnes per annum)

*Please see our Frequently Asked Questions page for an explanation of the different capacity operating statuses.
Capacity operating status* Electric arc furnace steelmaking capacity Nominal crude steel capacity (total)
announced 4000 TTPA[2][5][2][5] 4000 TTPA[2][5][2][5]

Table 6: Crude Iron Production Capacities (thousand tonnes per annum)

*Please see our Frequently Asked Questions page for an explanation of the different capacity operating statuses.
Capacity operating status* Sponge iron/DRI capacity Nominal iron capacity (total)
announced 5000 TTPA[2][8][2][8] 5000 TTPA[2][8][2][8]

Articles and Resources

Additional data

To access additional data, including an interactive map of steel power plants, a downloadable dataset, and summary data, please visit the Global Steel Plant Tracker on the Global Energy Monitor website.

References

  1. "Vale International enters into a LOI for Supplying Iron Ore Agglomerates to Essar Group's KSA Green Steel Project - Essar". Essar. 2023-09-07. Retrieved 2023-09-29.
  2. 2.00 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10 https://web.archive.org/web/20240125063350/https://www.essar.com/essar-eyes-end-2025-saudi-plant-commissioning/. Archived from the original on 25 January 2024. {{cite web}}: Missing or empty |title= (help)
  3. https://web.archive.org/web/20230321143804/https://www.essar.com/essar-returns-to-steel-biz-with-8-bn-investment/. Archived from the original on 21 March 2023. {{cite web}}: Missing or empty |title= (help)
  4. https://web.archive.org/web/20231031104647/https://www.bloomberg.com/news/articles/2023-10-25/essar-to-start-work-on-4-billion-saudi-steel-plant-from-2024. Archived from the original on 31 October 2023. {{cite web}}: Missing or empty |title= (help)
  5. 5.0 5.1 5.2 5.3 5.4 5.5 https://www.aist.org/news/steel-news/2021/december/essar-group-completes-land-deal-for-saudi-arabian. {{cite web}}: Missing or empty |title= (help)
  6. 6.0 6.1 https://web.archive.org/web/20211225155422/https://metalexpert.com/en/news/htmlinetnewsbus?head=Saudi-Arabia-takes-decisive-step-in-development-of-new-flat-steel-production-complex&unid=1920114708EB4C54C22587AD007D32D0Q. Archived from the original on 25 December 2021. {{cite web}}: Missing or empty |title= (help)
  7. https://www.kallanish.com/en/news/steel/market-reports/article-details/saudi-arabia-allocates-land-for-hrc-plant-1221/. {{cite web}}: Missing or empty |title= (help)
  8. 8.0 8.1 8.2 8.3 https://web.archive.org/web/20240124204531/https://ieefa.org/media/4116/download?attachment. Archived from the original on 24 January 2024. {{cite web}}: Missing or empty |title= (help)

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