EBRD supports energy efficiency at Turkey’s Erdemir Group

The European Bank for Reconstruction and Development (EBRD) is promoting bigger efficiency in Turkey’s steel industry with a EUR 75 million loan to the steelmakers Erdemir and Isdemir, each a part of Erdemir group, the biggest steel producer within the country.The loan will finance a comprehensive investment programme that may help the companies make the most effective use of resources in manufacturing processes at their 2 plants in Eregli on the Black Sea coast and Iskenderun on the eastern Mediterranean coast.

Steel production is known for its high energy intensity. However, sophisticated hi-tech instrumentation can result in significant reductions in energy use. Erdemir Group was founded in 1960 and has a liquid steel production capacity of 9,1 million tonnes a year. Its Eregli steelworks focus on flat steel production (hot-rolled coil, cold-rolled coil, hot-dip galvanised coil, hot-rolled plate and tinplate) while the Iskenderun plant produces both flat (hot-rolled coil) and long steel (billet, rebar and wire rod).

Erdemir and Isdemir’s main purpose is to adopt best practices to completely utilize gases and waste heat from their manufacturing processes. They additionally have plans to upgrade energy management systems and extract valuable by-products from industrial waste.Therefore the companies aim to invest in blast-furnace top-pressure recovery turbines to generate electricity - a progressive technology that uses high-pressure gases collected at blast furnaces.

As one of the most efficient, as well as largest steelmakers within the region, Erdemir Group will further decrease its energy purchase needs with the EBRD-financed energy efficiency investment programme. Currently, the company accounts for more than 1,5% of the country’s electricity consumption and a quarter of its crude steel production, and therefore is committed to reducing its environmental impact by supporting intelligent design and longer product life. At the same time, Erdemir also plans to recycle all manufacturing waste produced.

"Erdemir Group leads the Turkish steel market, generating a quarter of the market’s volume. Leading by example, it has the ability to start an energy efficiency revolution and transform the steel industry in Turkey. The steel sector requires greater efficiency and low-carbon industrial processes to enhance its global competitiveness and become more environmentally friendly.

The EBRD is currently working with the Ministry of Energy and Natural Resources to devise a National Energy Efficiency Action Plan for Turkey, and we are particularly pleased to have Erdemir Group supporting our efforts to develop energy efficiency policies for the sector," states Jean-Patrick Marquet, EBRD Director in Turkey.

 "Our fundamental principle is to ensure high quality production in an efficient, safe, environmentally sensitive and resource-smart manner. With the EBRD financing we are advancing even further on our journey towards greater sustainability and a lower environmental footprint," added Bulent Beyduz, Erdemir Group CFO.

The support of companies like Erdemir in adopting the best possible resource-efficient technologies is a part of EBRD’s Green Economy Transition approach that aims to increase the amount of EBRD financing for sustainable resources, raising them near EUR 18 billion over the course of the next five years.