The Ecolant Company (Ekolant LLC) has started the construction phase in the city of Vyksa, Nizhny Novgorod Region, Russia's first large full-cycle electric steel-smelting complex using modern environmentally friendly technologies. At the construction site of the green metallurgy plant "Ekolant" began to build the main building. Earlier, Glavgosexpertiza of Russia reviewed the design documentation and the results of engineering surveys and issued a positive conclusion.
Within the framework of the project, about 100 facilities will be built belonging to eight technological lines: direct reduced iron production, steelmaking, air separation plant, water treatment for recycling water supply, lime kiln shop, processing of by-products, railway and automobile logistics, energy supply.
The Ecolant complex uses equipment from Russian and foreign manufacturers. Auxiliary equipment will be supplied by the Ural Heavy Machine Building Plant, Troitsky Crane Plant, Tekvin, Aquateko, etc. The design, manufacture and installation of the main process equipment is carried out by Danieli (Italy) and Primetals (Austria). Design work is carried out by Magnitogorsk Gipromez and other domestic companies. Deliveries of the main and auxiliary equipment are scheduled for 2022-2023. Ecolant will be put into operation in 2025.
The project is being implemented through the SPIC mechanism and with participation in the financing of a syndicate within VEB. RF, Sberbank and Otkritie Bank as part of the VEB.RF Project Finance Factory. The total budget of the project is about 150 billion rubles.
“The green metallurgy project from Ecolant is unique, it provides solutions aimed at significantly reducing the negative impact on the environment - emissions of carbon dioxide and sulfur oxide into the atmosphere will be reduced by a factor of three compared to traditional converter production technology. This will happen due to the introduction of a green technology in the Russian market for smelting steel from hot metallized pellets obtained by the direct reduction of iron. Let me remind you that the project will receive state support — a SPIC was signed for its implementation in June 2021. The enterprise will produce high-quality slabs and round steel billets in the amount of up to 1.8 million tons per year, a significant amount of investment is planned,” said Denis Manturov, Minister of Industry and Trade of the Russian Federation.
“The Ecolant project is important for the Nizhny Novgorod region for several reasons. First of all, this is the largest investment project that will create about 700 jobs. Its implementation is an important stage in the development of Vyksa and the region as a whole. The launch of Ecolant will significantly increase the gross domestic product of the region. In addition, Ecolant is a truly world-class project based on the most advanced technologies, including carbon footprint reduction. Such tasks are set today by Russian President Vladimir Putin,” said Gleb Nikitin, Governor of the Nizhny Novgorod Region.
“The construction of an electrometallurgical complex in the Nizhny Novgorod region is one of the largest projects, the implementation of which began in 2021 as part of the Project Finance Factory. Together with our partners, we have already allocated funds for the purchase of high-tech equipment and are preparing to start financing construction and installation work on the site. The project is being implemented ahead of schedule. The construction of such enterprises meets the goals of sustainable development and the task of adapting the Russian economy to the global energy transition,” said VEB First Deputy Chairman. Russian Federation - member of the board Nikolai Tsekhomsky.
“We signed an agreement to finance the construction of this unique complex in Vyksa last year, and now, a few months later, before our very eyes, the syndicated loan is materializing. The Ecolant project is a vivid example of the fact that even in such carbon-intensive industries as metallurgy, green enterprises can and should appear. Facilitating the transition to carbon neutrality in the Russian economy is one of Sber's priorities, which is why we will continue to provide maximum support to green projects,” said Alexander Vedyakhin, First Deputy Chairman of the Management Board of Sberbank.
“We are glad that the experience of attracting project financing by Ecolant turned out to be successful. The transition to the construction phase confirms the implementation of the project in the shortest possible time, which means that Russia will soon begin production of steel with a low carbon intensity that meets the needs of modern society. Participation in this project is extremely important for Otkritie, as it fully fits into the concept of responsible financing,” said Viktor Nikolaev, Deputy President and Chairman of the Board of Otkritie Bank.
“Over the past fifteen years, we have invested more than 6 billion US dollars in the development of the company. The successful start of the construction of the first green metallurgy plant once again confirms our extensive experience in implementing large-scale projects. The launch of Ecolant in 2025 will increase the competitiveness of the Russian steel industry, increase the share of domestic production of high added value, strengthen the course towards decarbonization in the industry and will contribute to the development of the economy of our country as a whole. Steel products with a low carbon footprint for the Russian fuel and energy and transport industries will fully comply with the national and global green agenda,” said Anatoly Sedykh, Chairman of the OMK Board of Directors, the project initiator and chairman of the OMK Board of Directors.