Ecolant Secures First Financing from Russian Banks
Russian Green Steel entrant Ecolant recently announced the receipt of the first tranche in the amount of EUR 33 million for the implementation of Russia's first green metallurgy project in the Nizhny Novgorod region. The funds were provided by a syndicate of Russian commercial banks - Sberbank and Otkritie Bank (40% each), as well as VEB.RF (20% of the amount). The total cost of the project, which is being implemented using the Project Financing Factory mechanism, exceeds 140 billion rubles.
The project includes the construction of a full-cycle electrometallurgical complex using modern environmentally friendly technologies and the necessary infrastructure in the monotown of Vyksa. The future complex will produce steel, round billets and high quality slabs using the direct reduction method using iron ore pellets and natural gas. The technology used will make it possible to reduce carbon dioxide emissions by three times in comparison with the classical blast-furnace steelmaking technology.
Ecolant is a metallurgical complex without coke-chemical and blast-furnace converters. The steel will be produced from iron ore and natural gas using the Direct Reduced Iron method. The project is a single ore-steel production chain consisting of DRI, an electrometallurgical furnace and a secondary processing complex with a capacity of 1.8 million tonnes of steel per year and two continuous casting machines. Production is expected to start in 2025. The main part of the products will be used for the production of wide sheets for large-diameter pipes for trunk pipelines and for the construction of ships, the production of seamless pipes for oil production and the production of railway wheels on the largest line in Europe at the Vyksa plant of the United Metallurgical Company.