Türkiye’s industrial giants Erdemir and Isdemir pledged Thursday to invest $3.2 billion (TL 96.3 billion) to curb carbon emissions, aiming to achieve a 25% cut by 2030 and eventually increase the production capacity through these investments.
Under the plan announced on Thursday, the Erdemir integrated steel mill is set to reduce coal consumption by using biomass and natural gas, while the company builds new electric arc furnaces at its facilities in southern and northern Türkiye, said Serdar Başoğlu, chief financial officer of controlling shareholder OYAK Mining Metallurgy.
According to the information provided by Başoğlu, with the investments to be made, the total crude steel capacity of Erdemir and Isdemir, which is currently at 9.5 million tons, is expected to increase to 13.5 million tons.
Başoğlu added that Erdemir's goal is to reduce scope 1 and 2 emissions by 40% by 2040 and become carbon neutral by 2050, three years before the country's target date for carbon neutrality.
The electric arc furnace to be installed at Erdemir is set to have an annual capacity of 1.4 million tons, while the one to be installed at Isdemir would have a capacity of 2.5 million tons.
The emission-reduction plans of Erdemir and Isdemir, both controlled by the OYAK military pension fund, envisage over 70% of the required investment being financed by foreign resources, Başoğlu said.
The company could also consider issuing foreign currency bonds, he said.
"We plan to use mainly foreign financing sources with sustainability conditions for the projects. The plan and net zero emission target determined by our companies for green transformation will both be a role model for our country's iron and steel industry and will direct the sector's future," OYAK General Manager Süleyman Savaş Erdem said.
Erdemir, which generates a significant portion of its electricity from gases and heat released during manufacturing, plans to establish a solar power plant with a capacity of around 1,000 MW by 2025 to source all of its external electricity from renewable sources.