Azerbaijan-based steel producer Azerbaijan Metal Company’s (AzMC) project to build Azerbaijan’s first large-scale hot briquetted iron (HBI) facility has reached an important milestone with the completion of the project’s feasibility study, which confirmed its technical and economic viability and paved the way for the next engineering and implementation phases.
Project planned with 2 million mt annual capacity
The project, to be developed in Azerbaijan’s Shamkir region, envisages the construction of an HBI plant with an annual production capacity of 2 million mt. The facility is expected to be commissioned at the end of 2029 and will position Azerbaijan as an emerging producer of high-quality metallics for the global steel industry.
According to the bankable feasibility study report prepared by Sinosteel Equipment & Engineering Co., Ltd. under the agreement signed in Beijing last November, the project’s total capital expenditure is estimated at $800 million. The plant is expected to contribute approximately $1 billion annually to Azerbaijan’s GDP once commissioned, while creating around 1,600 direct and indirect jobs.
A significant portion of the investment required for the project is expected to be financed through international credit facilities, allowing AzMC to optimize its capital expenditures. As 50 percent of AzMC’s shares are state-owned, this financing structure is also expected to support the company’s financial efficiency. China’s Sinosure and Italy’s SACE have been appointed as export credit agency partners for the project, providing export credit insurance and guarantee support, while ING Bank has been assigned as the global coordinator.
ENERGIRON technology supports sustainability targets
One of the key elements of the feasibility study was the evaluation of the ENERGIRON Zero Reformer (ZR) technology, jointly developed by Tenova and Danieli. The ENERGIRON process, which is recognized globally for its high efficiency, operational flexibility and reduced environmental impact, enables the production of direct reduced iron (DRI) and HBI with significantly lower energy consumption and CO₂ emissions compared to conventional production routes.
The feasibility study confirmed the technical and economic advantages of using ENERGIRON Zero Reformer technology for the AzMC project, while also validating its suitability for achieving the plant’s production and sustainability targets.