KARACHI: Agha Steel Industries has signed a term sheet with Engro Energy Limited for providing Renewable Energy to Agha Steel from its Renewable Energy Park, which is being established at Jhimpir, District Thatta in Sindh.
The signing of term sheet is another major step taken by Agha Steel to initiate a ‘green steel revolution’ by helping in the sustainability of its energy mix and at the same time reducing burden on the national grid.
Since electricity is a major component in steel production, Agha Steel has decided to bring down its production cost by utilizing renewable energy for its product and at the same time contribute towards environmental sustainability.
The signing ceremony took place at the sideline of ‘Pakistan Energy Symposium,’ recently held at a local hotel in Karachi.
This is the first of its kind hybrid wind and solar PV park that is being established in the country and will provide up to 400MW of electricity by early 2024 in the first phase, with a potential to increase this generation to 1GW by the end of 2029.
It is estimated that once Agha Steel installs MiDa technology, it would reduce its electricity consumption by a hefty 20 percent, and its production losses in terms of raw material would be reduced by 8 percent.
Engro Energy Limited CEO Ahsan Zafar Syed said Engro Energy is revolutionizing the energy sector by providing industries access to economical, reliable and green energy to fulfil their power requirements. In addition, our efforts to establish the RE park is also in line with Pakistan’s vision to deploy a green energy mix whereby up to 60% energy requirements of the country are met by clean sources, he added.
Elaborating on Engro Energy’s purpose behind establishing an RE Park at Jhimpir, Ahsan Zafar explained that the ultimate purpose of the RE park is to open up the energy market and help spur economic growth through increased industrialization and export-led growth in the country.
He added that the initiative is also designed to ensure that as a leading corporate entity we contribute positively to the global agenda of utilizing clean energy sources to fight climate change and protect the environment.
He also appreciated Engro Energy’s efforts to solve one of the most pressing issues of energy in Pakistan & construction of this renewable energy park is testament to their vision. This initiative will also support Pakistan’s goal to become a low-carbon, renewable energy-reliant economy by 2030 and contributes to its national target of reducing greenhouse gas emissions to combat climate change.
Hussain Agha further said that in line with our Sustainable Development Goals (SDG), it is our vision to become Pakistan’s first green steel manufacturer with zero reliance on fossil fuels by 2025. As a micro mill utilizing scrap-based Electric Arc Furnace (EAF) technology, we are helping to preserve our natural resources.
“By using recycled scrap for our raw material, we reduce the need for natural resources. Our CO2 Scope 1 greenhouse gas emissions and energy consumption intensities are approximately 7 times less than the global steelmaking average. We are extremely proud to say Green Steel Revolution has come to Pakistan”, he added.
Copyright Business Recorder, 2022
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