KARACHI: Agha Steel Industries, a leading Steel rebar manufacturing company has signed a contract with Renewable Power Pvt. Ltd. for installing a 2.25 Megawatt solar power project at its production facility located at Port Qasim Karachi.
Meezan Bank has been nominated as the lead Islamic banking arranger for the project. This would be among one of the largest solar power projects installed by a steel manufacturer in Pakistan.
According to a statement this project will initiate a Green Steel Revolution at Agha Steel Industries by helping in sustainability of its energy mix and at the same time reducing the burden on national grid.
The 2.25 Megawatt solar power project would also reduce the carbon emission by 46,000 tons in a lifespan of 20 years.
This solar power plant, being installed on the self-consumption basis, will produce around 3.3 million units of clean and renewable electricity every year, which will result in a significant drop in the carbon footprint of Agha Steel Industries.
The company is currently undergoing an expansion to increase its rebar capacity to 650,000 from current 250,000 tons per.
Electricity is a major component in steel production and Agha Steel has decided to bring down its production cost through solar power production. It is estimated that once Agha Steel installs MiDa technology in September 2021, it would reduce its electricity consumption by a hefty 20% and its production losses in terms of raw material would be reduced by 8%.
Speaking at the occasion, Mr. Hussain Agha CEO Agha Steel said “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 green-house gas emissions and energy consumption intensities are approximately 7 times less than the global steel making average.”
Mr. Ariful Islam, Deputy Chief Executive Officer, Meezan Bank Ltd also appreciated this green initiative. “We are proud to partner with Renewable Power for this project which will initiate a Green Steel Revolution at Agha Steel and create a long term value for the company, society & environment,” noted Hussain Agha.
This solar power project also supports Pakistan’s goal to become a low-carbon, renewable energy-reliant economy by 2030 and contributes to its national target in reducing greenhouse gas emissions to combat climate change.