Primetals Technologies and GRP join forces to revolutionize steel production with a cutting-edge, environmentally friendly technology that eliminates fossil fuel usage and reduces greenhouse gas emissions to zero.
The partnership between Gunung Raja Paksi (GRP) and Primetals Technologies marks a significant milestone in the production of sustainable steel. GRP, Indonesia’s largest privately owned steel manufacturer, has entered an agreement with Primetals Technologies to become the first Asian steel mill outside of China capable of producing zero-carbon hot rolled coil (HRC) steel.
This partnership will meet the growing demand for HRC steel in Europe and position GRP as a leading low-carbon steel manufacturer in South East Asia. The technology integrated by GRP, Primetals Technologies’ Arvedi Endless Strip Production (ESP), combines casting and rolling processes to produce thin and ultra-thin gauges.
The Arvedi ESP technology eliminates the use of fossil fuels, thereby reducing greenhouse gas emissions to zero. This is a significant step towards sustainable steel production and aligns with the Indonesian Government’s efforts to reach net zero by 2060.
Climate change refers to the long-term warming of the planet, primarily caused by human activities that release greenhouse gases into the atmosphere.
The main culprits are carbon dioxide and methane emissions from burning fossil fuels, deforestation, and land-use changes.
Rising temperatures lead to more extreme weather events, sea-level rise, and altered ecosystems.
According to NASA, the average global temperature has risen by 1°C since the late 19th century.
The 'Intergovernmental Panel on Climate Change (IPCC) ' warns that continued greenhouse gas emissions will lead to catastrophic consequences, including food and water scarcity, mass migrations, and loss of biodiversity.
GRP plans to commence production by 2027, aiming to double its output from 1.3 million tonnes (mt) to 2.5mt of low-carbon steel. Over half of this output will be destined for the EU market. This deal provides GRP with a competitive edge for exporting to the EU in light of the carbon border adjustment mechanism (CBAM) regime.
The carbon border adjustment mechanism (CBAM) is a policy tool designed to level the playing field for industries facing climate policies in other countries.
It allows importing countries to charge duties on imported goods based on their embedded 'carbon price' , making it more expensive for companies to import goods with high carbon emissions.
CBAM aims to reduce greenhouse gas emissions by encouraging domestic production and discouraging imports from countries without strict environmental regulations.
Primetals Technologies will supply the full technological equipment, including a high-speed caster and a rolling mill, as well as a complete package of electric and automation solutions for the ESP plant. This partnership marks a milestone in GRP’s Project Green Dragon initiative, announced in November 2024.
Kelvin Fu, GRP chief transformation officer, said, ‘Our adoption of Primetals Technologies’ Arvedi ESP technology means, practically overnight, GRP has leapfrogged from its status as a well-known raw commodity manufacturer to high-end steel product producer – no other steelmaker in the world has successfully executed a category shift as swiftly as this.‘
Andreas Viehboeck, Primetals Technologies executive vice-president and head of global business unit upstream, said, ‘Compared to other available technologies, the Arvedi ESP technology ensures higher energy savings and superior material yield and product quality, while guaranteeing the absence of any fossil fuel usage. This will allow GRP to stand out and excel on both Indonesian and international markets, enabling them to also enter into high added value quality product niches, including automotive applications.‘
Primetals Technologies is a leading provider of metallurgical and mechanical technologies for the steel, aluminum, and other metals industries.
The company was formed in 2011 through the merger of VAI (Voestalpine Automation) and Mitsubishi Heavy Industries' (MHI) 'steel business'.
Primetals offers a wide range of products and services, including EAF (Electric Arc Furnace), BOF (Basic Oxygen Furnace), and continuous casting technologies.
The company operates globally with major offices in Europe, Asia, and the Americas.
- yahoo.com | GRP, Primetals Technologies partner to produce sustainable steel
- primetals.com | Current News of Primetals Technologies
