Russian steelmaker Severstal has announced that it has inked a special investment contract with Russia’s Ministry of Industry and Trade and the Vologda region government for high-quality steel production with a low carbon footprint in the Vologda region.
As part of the deal, the company will build a pellet production complex with a capacity of 10 million mt per year within the Cherepovets plant, based on green steel production technology, entailing an investment of RUB 96.8 billion ($1.09 billion). Scheduled to be commissioned in 2026, the new complex will contribute to environmental protection, reduce solid fuel consumption and increase blast furnace productivity.
“This technology has no analogues in Russia. Using natural gas as the main fuel, we will be able to produce environmentally friendly raw materials for our blast furnaces. Based on it, we will produce high-quality steel with a low carbon footprint,” Alexey Mordashov, chairman of Severstal, stated.
