KARACHI: Agha Steel Industries, a leading Steel rebar manufacturing company, has signed a contract with Renewable Power Pvt Ltd for installing a 2.25MW solar power project at its production facility at Port Qasim Karachi, a statement said on Wednesday.
Meezan Bank has been nominated as the lead Islamic banking arranger for the project. This would be among one of the largest solar power projects installed by a steel manufacturer in Pakistan.
The project will initiate a Green Steel Revolution at Agha Steel Industries by helping the sustainability of its energy mix and, at the same time, reducing the burden on the national grid.
The 2.25MW solar power project would also reduce carbon emission by 46,000 tons in a lifespan of 20 years, it said.
This solar power plant, being installed on self-consumption basis, will produce around 3.3 million units of clean and renewable electricity every year, which will result in a significant drop in the carbon footprint of Agha Steel Industries.
The company is currently undergoing an expansion to increase its rebar capacity to 650,000 tons from the current 250,000 tons.
Electricity is a major component in steel production and Agha Steel has decided to bring down its production cost through solar power production.
It is estimated that once Agha Steel installs MiDa technology in September 2021, 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.
Hussain Agha, CEO of Agha Steel, 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.”