- June 10, 2020
- Press Release
GFG Alliance signs MoU with Romanian Government to create a European GREENSTEEL flagship at LIBERTY Galati
- Prime Minister of Romania visits LIBERTY Galati to back Sanjeev Gupta’s GREENSTEEL plans
- LIBERTY Galati investments in low carbon technologies to create first GREENSTEEL facility of its kind in Europe
- Significant local support as GFG Alliance signs MoUs with the Romanian Ministry of Economy, Energy and Business Environment, Romgaz, educational and research institutions and EximBank Romania to bring its GREENSTEEL vision to life
Sanjeev Gupta, the Executive Chairman of GFG Alliance, which includes LIBERTY Steel Group, today welcomed Ludovic Orban, the Prime Minister of Romania, to LIBERTY Galati as he signed a series of agreements with Government, the national gas company Romgaz, EximBank Romania and also local educational institutions to help deliver his GREENSTEEL vision
During the visit, Sanjeev and Mr Virgil-Daniel Popescu, the Minister of Economy, Energy and Business Environment, signed a Memorandum of Understanding (“MoU”) supported by Prime Minister Orban, which incorporates GFG’s plan to install modern steel-making technologies, significantly reducing direct CO2 emissions, increasing the use of lower carbon energy sources and creating a more flexible, competitive operation.
Alongside the investment MoU, GFG Alliance signed agreements with key national suppliers and respected educational institutions that will work with LIBERTY Galati to deliver the transformation through the provision of competitive energy, skills, research, know how and finance.
Commenting on the Prime Minister’s visit and the signing of the various MoUs, Sanjeev Gupta the Executive Chairman of GFG Alliance, said: “It is a great honour to welcome the Prime Minister and other senior members of the Romanian government here today in support of our GREENSTEEL vision for Galati. Through their backing, and the agreements we have signed today with Romgaz we will be able to deliver the competitive long term energy needed to underpin this exciting project. Galati University will partner with us to create a GREENSTEEL Academy aimed at developing a new generation of highly skilled workers equipped to handle cutting edge technologies. The National Research Institute will help develop the know how required to deliver complex hydrogen projects. EximBank Romania will cooperate with us to secure competitive long term funding for the project.”
“It is very encouraging to see such strong local support united with us to make Galati the GREENSTEEL flagship in Europe. 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.”
GFG Alliance GREENSTEEL investment plans include:
- 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.
Summaries of the MoUs are below:
- 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 green 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.
GREENSTEEL is steel produced by from re-melting steel scrap, or melting Direct Reduced Iron (DRI) produced using natural gas (transitioning to hydrogen). Scrap and/or DRI is melted in electric arc furnaces powered, where possible, by low emission or renewable energy technology, to produce high quality steel products.
LIBERTY Galati Skills Academy, which will be a partnership with “Dunarea de Jos” University of Galati, 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 Academy will aim to:
- Develop skills associated with science, technology, engineering, and mathematics (STEM) and help young people to benefit from workplace experiences.
- Empower young people to benefit from skills development likely to improve their prospects of employment.
- Help young people realise that steel is critical to their future too and that we need their help to build a sustainable future for us all.
“Dunarea de Jos” University of Galati will be providing a dedicated team to support The Academy’s programmes, both teaching and support personnel.
Direct Reduced Iron (DRI) plants
DRI technology brings significant benefits to steel-making compared to traditional Blast Furnace (BF) techniques:
- Lower CO2 emissions. The direct CO2 emissions drop down to 300 kg CO2 per tonne of steel (1,830 kg CO2/t steel for the traditional integrated route).
EAF electricity consumption.
- When charged hot in the EAF, electricity consumption drops by 100 kWh/t steel.
- DRI plants, like EAFs, can modify their production so can start and stop easily depending on the production requirement.
- The mix of DRI/scraps in the EAF can be adapted according to raw material market condition.
Improved product quality
- Very low residual materials (Cu, Cr, Ni) compared to scraps.
- Carbon content in the DRI can be easily controlled for obtaining the requested steel quality.
Good raw material availability
- Good quality DR pellets are produced in large quantity in CIS countries.
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