Agha Steel Industries, a leading steel manufacturing company, has signed a term sheet with Engro Energy Limited, under which Engro Energy will provide renewable energy to Agha Steel from its Renewable Energy Park being established at Jhimpir village of district Thatta, Sindh.
The signing ceremony took place during the “Pakistan Energy Symposium” held at a local hotel in Karachi.
The first of its kind, the Renewable Energy Park is a hybrid wind and solar PV facility, which will provide — in its first phase — up to 400MW of electricity by early 2024, while it has the potential to increase this generation to 1GW by the end of 2029.
CEO Engro Energy Limited, Ahsan Zafar Syed, said, “Engro Energy is revolutionizing the energy sector by providing industries access to economical, reliable, and green energy to fulfill their power requirements. In addition, our efforts to establish the RE park are also in line with Pakistan’s vision to deploy a green energy mix whereby up to 60% of energy requirements of the country are met by clean sources.”
Elaborating on Engro Energy’s purpose behind establishing the Renewable Energy Park at Jhimpir, Ahsan Zafar explained that the ultimate purpose of the Renewable Energy Park was to open up the energy market and help promote economic growth through increased industrialization and export-led growth in the country. He added that the initiative was 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.”
The signing of the 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 the 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 toward environmental sustainability.
“We are proud to partner with Engro Energy Limited for supplying renewable energy which will initiate a Green Steel Revolution at Agha Steel and create a long-term value for the company, society & environment,” said Ahsan Zafar. He also appreciated Engro Energy’s efforts to solve one of the most pressing issues of energy in Pakistan. The 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.
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.
CEO Agha Steel, Hussain Agha, 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 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.”