Financing of a large-scale metallurgical ESG-project Ecolant has opened in Russia. It will be located in Vyksa, Nizhny Novgorod Region. The total cost will amount to over 140 billion rubles.
The first tranche amounted to 33 million euros, of which 20% is financed by VEB.RF and 40% by partner banks - Sberbank and Otkrytie Bank each.
Sber explained that the project includes construction of electrometallurgical complex and necessary infrastructure for steel production using modern environmentally friendly technologies. This method will result in a threefold reduction of carbon dioxide emissions.
The total cost of the project, which is being implemented using the Project Finance Factory mechanism, exceeds 140 billion rubles, of which 40 billion will be invested by Sber.
"We are pleased to participate in the financing of such a large-scale and promising ʺgreenʺmetals project. This complex will be one of the most productive in the world and will demonstrate that even in energy-intensive industries such as metallurgy, efficient ESG solutions are possible , which minimize the carbon footprint and impact on nature in general," Sberbank First Deputy Chairman Alexander Vedyakhin was quotedas saying .
The first credit funds of the syndicate will be used to pay for the contract for the supply of high-tech equipment, said First Deputy Chairman of VEB.RF Nikolai Tsekhomsky. "The project technology allows us to significantly reduce carbon dioxide emissions compared to conventional steel production technology and meets current and prospective international environmental requirements. The project in Vyksa is very important for the whole region, it will provide over 700 new jobs," he stressed.
The ʺEcolantʺ metallurgical complex is planned to be launched in 2025, it will give an impetus to the development of the metallurgical industry and contribute to the growth of the Russian economy as a whole, said Director of Production Andrey Kukhno.
"Ecolant is a metallurgical complex without coke-chemical and blast furnace-converter process stages. The steel will be produced from iron ore and natural gas by direct reduction of iron. The project consists of an integrated ore-steel production chain with an annual capacity of 1.8 million tonnes of steel and two continuous casting machines. The bulk of production will be used to produce wide sheets for large-diameter pipes for trunk pipelines and shipbuilding, to produce seamless pipes for oil production and to produce railway wheels at the United Metallurgical Company's Vyksa plant, the largest in Europe.
Made in Russia // Made in Russia
Author: Karina Kamalova