GFG Alliance is working to transform its steelworks at LIBERTY Galati, in Romania, to become the first GREENSTEEL facility of its kind in continental Europe.
The transformation plan includes installing modern steel-making technologies which will significantly reduce direct CO2 emissions, increasing the use of lower carbon energy sources and creating a more flexible, competitive operation.
Our Executive Chairman, Sanjeev Gupta, says: “I have no doubt this project will be a great success and will put Galati on the map not only in Europe but globally as a new age sustainable low carbon steel plant built for the next generations to come.”
In detail, the plan includes:
- A Direct Reduced Iron (DRI) plant with 2.5 million tonne capacity. The DRI plant, which will initially use natural gas, will transition to using hydrogen as hydrogen production technology becomes more cost effective.
- Two Electric Arc Furnaces, one of which will be dedicated to cast slabs for Galati’s world renowned plate mill and the other for direct casting of hot rolled coil production, a state of the art and highly competitive technology. The EAFs will reduce CO2 emissions per tonne of steel produced by up to 80%, with emissions dropping to almost nothing once the DRI plant is hydrogen powered. This will make Galati the first European primary steel plant in GFG to get going on a path to become carbon neutral by 2030.
- Expand production capacity towards 4 million tonnes of liquid steel a year.
The plan, underpinned by an investment Memorandum of Understanding signed with the Romanian Government, includes agreements with the national gas company Romgaz, EximBank Romania and local educational institutions to deliver GFG Alliance’s GREENSTEEL vision.
Summaries of the MoUs include:
- The MOU with the Ministry of Economy, Energy and Business Environment outlines GFG’s investment plans for LIBERTY Galati and confirms the Ministry’s determination to support and encourage GFG Alliance’s investment in the sustainable development of LIBERTY Galati.
- The MoU signed with Adrian Constantin Volintiru, the CEO of Romgaz, provides a framework for the potential joint venture partnership between the parties to build a new natural gas power plant within the curtilage of LIBERTY Galati.
- The MoU signed with Professor Dr. Puiu Lucian Georgescu, Rector of “Dunarea de Jos” University Galati, is to collaborate in the creation of a LIBERTY Galati GREENSTEEL Academy. The Academy will encourage more young people, from top-quality engineers to technical and operational specialists, to come into the steel industry to help develop more sustainable production methods.
- The MoU signed with Mihai Varlam, Executive Director at The Romanian Institute for Research and Development for Cryogenic and Isotopic Technologies, is to collaborate in the development of technical studies and business applications of hydrogen technology in steel production.
- The MoU signed with Traian Halalai, Executive Chairman, EximBank Romania, agrees to collaborate to support GFG’s investment in LIBERTY Galati.
Read the full media release for further information and commentary.