Italy and Algeria are considering joint construction of a DRI production plant

The agreement between Italy's CEIP Scarl and Algeria's Copresud is estimated at €1 billion

Italian Electroside Consortium for Pre-Reduced Iron (CEIP Scarl) and Algeria’s Copresud intend to jointly develop a feasibility study for the construction of a direct reduced iron (DRI) plant in Algeria. A memorandum of understanding was signed last week during a bilateral economic summit, according to Agenzia Nova.

The cooperation is based on industrial and logistical synergies, in particular access to inexpensive energy and proximity to the European market.

The project, which is also supported by the Duferco group, includes research into the integration of renewable energy sources and the gradual use of green hydrogen in production processes.

The parties have committed to jointly submit a technical dossier on the project to the Algerian Investment Promotion Agency in order to obtain its qualification and access to local incentives. The agreement is valued at €1 billion and has an initial term of two years.

CEIP Scarl was founded in 2022 by twelve Italian steel mills using EAF. The association aims to ensure a steady supply of DRI for the Italian steel industry. Copresud, in turn, is a leading provider of technical and logistics services to Algerian industry.

CEIP President Giancarlo Quaranta said that the private Italian companies that are part of the consortium are seeking to better assess the possibility of building a plant whose products are intended for exclusive use at these steel mills.

Tosyali SULB, a joint venture between Turkish steel producer Tosyali Holding and Libya’s United Steel Company for Ferrous Metallurgy (SULB), placed an order with Midrex and Germany’s SMS Group earlier this year for the first phase of the DRI complex construction plan in Libya.