Ecolant announced the signing of SPIC 2.0 for the construction of Russia’s first green metallurgy plant. A special 20 year investment contract for the construction in Vyksa of the Nizhny Novgorod region of the Ecolant electrometallurgical complex was signed at the St. Petersburg International Economic Forum on 4 June 2021.
According to the document, Ecolant LLC is implementing a large scale project using modern technologies and receiving tax incentives for income tax and property tax of organizations, as well as guarantees of stability of working conditions.
Benefits will be valid for the entire period of the contract, starting from the moment the tax base arises. This is the first project in the Nizhny Novgorod region, which is being implemented using the SPIC 2.0 mechanism.
Ecolant is a metallurgical complex without coke, blast-furnace and converters. The steel will be produced from iron ore and natural gas using the Direct Reduced Iron method. The project is a single ore steel production chain consisting of DRI, an electrometallurgical furnace and a secondary processing complex with a capacity of 1.8 million tonnes of steel per year and two continuous casting machines.
This will allow three times to reduce emissions of carbon dioxide, as well as sulfur oxide into the atmosphere in comparison with the traditional converter production technology. Production is scheduled to start in 2025.
The bulk of the products will be used for the production of wide sheets used in shipbuilding and for the manufacture of large-diameter pipes for the main pipelines of the Vyksa plant of the United Metallurgical Company. Ecolant will also produce billets for the production of seamless pipes for oil production and railroad wheels at the OMK plant in Vyksa.
The total cost of the project is about 150 billion rubles. Part of the funds for the project will be provided by VEB.RF, Sberbank and Otkritie Bank within the framework of VEB.RF’s Project Financing Factory.