FCC

Essar launches $ 4 billion Saudi steel plant in 2024

2023-10-30

India?s Essar Group has revealed its intentions to invest billions of dollars in low-carbon projects across Saudi Arabia, the UK, and India, marking a significant shift toward clean energy investments. The conglomerate, helmed by billionaire siblings Shashi and Ravi Ruia, anticipates obtaining final approvals by June to initiate investments totaling approximately $4 billion. This investment will be directed towards the construction of a low-carbon steel plant capable of producing 4 million tons annually in Ras Al-Khair, Saudi Arabia. Prashant Ruia, director of Essar Capital, the entity managing the conglomerate?s investment portfolio, disclosed this information.

In an interview conducted at an investment conference in Riyadh, Ruia stated, ?Once we secure all necessary approvals, we have outlined a three-year timeframe to complete the project. Our objective is to establish this plant to cater to the surging domestic demand for steel.?

Having achieved debt-free status in the previous year due to the sale of specific infrastructure assets, Essar plans to invest $ 3.6 billion in various low-carbon energy projects over the next five years. These initiatives encompass a $ 2.4 billion endeavour aimed at decarbonising its oil refinery in the UK and a $ 1.2 billion green ammonia plant in India. The latter will serve not only the UK but also other international destinations within approximately three and a half years.