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 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]

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[3][4] 2021-10[3] 2024[5] 2025[3]

Table 3: Ownership and Parent Company Information

Owner Owner company PermID Owner company GEM ID
Essar Global Fund Ltd[6] 5000026125 E100000000510

Table 4: Process and Products

Steel product category Steel products Main production equipment Detailed production equipment
semi-finished; finished rolled[7] slab; hot-rolled coil[7] DRI, EAF[6] 2 DRI plants, 2 EAF[8]

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[3][6][3][6] 4000 TTPA[3][6][3][6]

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[3][9][3][9] 5000 TTPA[3][9][3][9]

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. "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 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)
  4. 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)
  5. 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)
  6. 6.0 6.1 6.2 6.3 6.4 6.5 https://www.aist.org/news/steel-news/2021/december/essar-group-completes-land-deal-for-saudi-arabian. {{cite web}}: Missing or empty |title= (help)
  7. 7.0 7.1 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)
  8. 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)
  9. 9.0 9.1 9.2 9.3 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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