Interpipe presents a $1 billion green capacity expansion project

Ukrainian industrial company Interpipe presented a major investment project worth about $1 billion at the International Conference on Ukraine’s Recovery (URC2024) in Berlin, which involves the expansion of green steel production facilities. This is stated in the company’s press release.

It is about the construction of the second stage at the Interpipe Steel electric steelmaking complex and a green flat steel production shop.

«In post-war Ukraine, we expect a significant shortage of supply of flat products. In addition, we see an ever-growing demand for green steel in the European Union. Our proposed project is designed to meet this demand. However, its implementation will require significant debt financing from IFIs. We hope that the Ukraine Development Fund will be the instrument that will help us prepare this project,” commented Fadi Khraibe, Chairman of the Board of Directors of Interpipe.

Despite Russia’s full-scale invasion of Ukraine and constant challenges for Ukrainian business, Interpipe continues to invest in its own facilities. Thus, in 2022, the company’s capital investments amounted to $21 million (-66.6% y/y), and in 2023 – $31 million, which is 47.6% higher y/y.

In the EU, the implementation of the Green Deal is gradually gaining momentum, which, in particular, provides for a 55% reduction in greenhouse gas emissions by 2030 and their complete absence by 2050. The vast majority of European steel companies have already set decarbonization targets in line with the Green Deal.

«Interpipe’s new project is fully in line with the European Green Deal and Ukraine’s aspirations for European integration. Most European steelmaking decarbonization projects are based on the transition to electric arc furnaces, as this technology is the least carbon-intensive and allows to achieve carbon neutrality in the future (provided we use green electricity and direct reduced iron produced using green hydrogen),” said Andriy Glushchenko, GMK Center analyst.

Interpipe Steel is the largest electric arc furnace complex producing round steel billets in Eastern Europe. The plant is the most modern in Ukraine and was commissioned in 2012. The total investment in the construction amounted to $700 million. Green metallurgy technologies were used in the construction: a closed-loop water supply system, a modern gas removal and gas purification system, and a noise insulation system.