Romanian minister of economy and energy Virgil Popescu announced on Wednesday, June 10, a EUR 1.2 billion investment plan at the Galati steel plant, controlled by British group Liberty Steel since last year, Adevarul reported.

The investment plan aims to make the company carbon-neutral within five years.

In partnership with state-controlled Romgaz and financed by state-owned bank Eximbank, Liberty Galati will develop a gas-fired power plant to be later retrofitted for using hydrogen. The company will also invest in renewable energy units (wind farms and PV parks).

The investment plan also includes the expansion of the yearly production capacity at Liberty Galati from 2 million tonnes of steel currently to 4 million tonnes, Ziarul Financiar daily reported.

Prime minister Ludovic Orban attended the signing ceremony of the Memorandum of Cooperation between Liberty Galati and Romgaz.

"Based on the agreement we signed today with Romgaz, we will be able to deliver the long-term competitive energy needed to support this fascinating project to produce steel in Galati with a low carbon footprint. I have no doubt that this project will be a great success and will put Galati on the map, not only in Europe but globally, as a low-carbon, sustainable steel manufacturing unit for a new era, built for future generations," said Sanjeev Gupta, Executive Chairman of the GFG Alliance, Liberty Steel's parent-group.

editor@romania-insider.com

(Photo source: the company)