Essar Ras Al Khair steel plant

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

Location

The map below shows the approximate location of the plant in Ras Al-Khair, Eastern, 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 2028.[1] 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.[2]

Ownership Tree

This ownership tree is part of the Global Energy Ownership Tracker, a project of Global Energy Monitor.

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
Project name Essar DRI Ras Al-Khair
Company Essar Global Fund Ltd
Company has climate goals? No
Location Ras Al-Khair, Saudi Arabia
Project website Not available
Project scale Full scale
Project status Announced
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 (m USD) 4500
Partners Bahrain Steel
Date of announcement 8/17/2023

Plant Details

Table 2: General Plant Details

Announced date Construction date Start date Power source
2021-10[3] 2024[4] 2028[3][5] Renewables[6]

Table 3: Ownership and Parent Company Information

Parent company Parent company PermID Parent GEM entity ID Owner Owner company PermID Owner GEM entity ID
Triton Trust; Virgo Trust unknown; unknown E100002004743; E100002004742 Essar Global Fund Ltd [100%][7] 5000026125 E100000000510 [100%]

Table 4: Process and Products

Steel product category Steel products Main production equipment
semi-finished, finished rolled[8] slab, coil[8] DRI; EAF

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

1Please see our Frequently Asked Questions page for an explanation of the different capacity operating statuses.
Capacity operating status1 Electric arc furnace steelmaking capacity Nominal crude steel capacity (total)
announced 4000[3][7] 4000[3][7]

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

1Please see our Frequently Asked Questions page for an explanation of the different capacity operating statuses.
Capacity operating status1 Sponge iron/DRI capacity Nominal iron capacity (total)
announced 5000[9][3][6] 5000[9][3][6]

Table 7: Upstream Products Production Capacities (thousand tonnes per annum)

Ferronickel Sinter Coke Pellets
NF NF NF NF

Unit Details

Table 8: Direct Reduced Iron Furnace Details

Unit name Status Start date Furnace type Current capacity (ttpa)
unknown DRI (1) announced[9] 2027[10] shaft furnace[11][12] 2500[3][9][6]
unknown DRI (2) announced[9] 2027[10] shaft furnace[13] 2500[3][9][6]

Table 9: Direct Reduced Iron Furnace Reductant Details

Unit name Current or initial reductant Gas reductant Hydrogen reductant status Future hydrogen reductant color
unknown DRI (1) gas[9] syngas (reformed methane)[9] capable[9] not found[9]
unknown DRI (2) gas[9] syngas (reformed methane)[9] capable[9] not found[9]

Table 10: Electric Arc Furnace Details

Unit name Status Current capacity (ttpa)
unknown EAF (1) announced[14][9][4] 2000[3][7]
unknown EAF (2) announced[14][9][4] 2000[3][7]

Table 11: Electric Arc Furnace Feedstock Details

Unit name Scrap-based % scrap % DRI
unknown EAF (1) no[15][3] 0[15][3] 100.00[15][3]
unknown EAF (2) no[15][3] 0[15][3] 100.00[15][3]

Articles and Resources

Additional data

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

References

  1. ↑ "USD 4.5 Billion Steel Plant to Be Established in Ras Al Khair". SecneNow. Retrieved 2024-11-18.
  2. ↑ "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.
  3. ↑ 3.00 3.01 3.02 3.03 3.04 3.05 3.06 3.07 3.08 3.09 3.10 3.11 3.12 3.13 3.14 3.15 https://web.archive.org/web/20240125063350/https://www.essar.com/essar-eyes-end-2025-saudi-plant-commissioning/. Archived from the original on 2024-01-25. {{cite web}}: Missing or empty |title= (help)
  4. ↑ 4.0 4.1 4.2 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 2023-10-31. {{cite web}}: Missing or empty |title= (help)
  5. ↑ "USD 4.5 Billion Steel Plant to Be Established in Ras Al Khair". SecneNow. Archived from the original on 2025-03-12. Retrieved 2024-11-18.
  6. ↑ 6.0 6.1 6.2 6.3 6.4 https://www.essar.com/inthenews/essar-group-and-desert-technologies-sign-mou-for-developing-renewable-energy-solutions-for-essars-ksa-green-steel-arabia-project/. {{cite web}}: Missing or empty |title= (help)
  7. ↑ 7.0 7.1 7.2 7.3 7.4 https://www.aist.org/news/steel-news/2021/december/essar-group-completes-land-deal-for-saudi-arabian. {{cite web}}: Missing or empty |title= (help)
  8. ↑ 8.0 8.1 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 2021-12-25. {{cite web}}: Missing or empty |title= (help)
  9. ↑ 9.00 9.01 9.02 9.03 9.04 9.05 9.06 9.07 9.08 9.09 9.10 9.11 9.12 9.13 9.14 9.15 https://web.archive.org/web/20240124204531/https://ieefa.org/media/4116/download?attachment. Archived from the original on 2024-01-24. {{cite web}}: Missing or empty |title= (help)
  10. ↑ 10.0 10.1 https://www.essar.com/inthenews/essar-secures-100-raw-material-supply-for-saudi-steel-plant/. {{cite web}}: Missing or empty |title= (help)
  11. ↑ "Foulath Subsidiary Signs LOI for Iron Ore Supply to Essar KSA". Essar. 2023-08-17. Archived from the original on 2025-02-20. Retrieved 2024-10-22.
  12. ↑ https://www.constructionworld.in/steel-news/essar-nears-final-approval-for-4.5-billion-saudi-steel-plant/57947. {{cite web}}: Missing or empty |title= (help)
  13. ↑ https://gulfconstructiononline.com/Article/1628385/Essar_to_build_$45bn_steel_plant. {{cite web}}: Missing or empty |title= (help)
  14. ↑ 14.0 14.1 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)
  15. ↑ 15.0 15.1 15.2 15.3 15.4 15.5 https://www.essar.com/essar-secures-100-raw-material-supply-for-saudi-steel-plant/. {{cite web}}: Missing or empty |title= (help)

Resources

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