Turkish steelmaker Erdemir to invest $3.2 bln to cut emissions by 25% (updated)

Iskenderun Demir Ve Celik

11/01/2024 12:51

(Adds detail on investment, longer-term plans)
       ISTANBUL, Jan 11 (Reuters) - Turkey's largest steelmaker
Erdemir  EREGL.IS  on Thursday pledged to invest $3.2 billion to
achieve a 25% cut in its emissions by 2030.
    Under the plan announced on Thursday, the Erdemir integrated
steel mill will reduce coal consumption by using biomass and
natural gas while the company builds new electric arc furnaces
at its facilities in southern and northern Turkey, said Serdar
Basoglu, CFO of controlling shareholder OYAK Mining Metallurgy. 
    Current capacity of 9.5 million metric tons of crude steel
is expected to jump to 13.5 million tons with the addition of
new electric arc furnaces by 2030, he said.
    Basoglu added that Erdemir's goal is to reduce scope 1 and 2
emissions by 40% by 2040 and become carbon neutral by 2050,
three years before the country's target date for carbon
neutrality.
    The emission-reduction plans of Erdemir and Isdemir
 ISDMR.IS , both controlled by the OYAK military pension fund,
envisage more than 70% of the required investment being financed
by foreign loans, Basoglu said.
    The company could also consider issuing foreign currency
bonds, he said.

 (Reporting by Can Sezer
Editing by David Goodman
)
 ((daren.butler@tr.com; +90-212-350 7053; Reuters Messaging:
daren.butler.thomsonreuters.com@reuters.net))