Announced an investment target of US$ 3.2 billion by 2030 for net zero
Erdemir, which announced its green transformation roadmap in January, is completing its first year with strong performance in its green steel journey. This initiative aims to reduce carbon emissions in crude steel production by 25% by 2030, 40% by 2040, and achieve net zero emissions by 2050.
Erdemir successfully completed the injection of hydrogen into the blast furnace this year, a first in Türkiye, and began developing coal alternatives with the pilot Pyrolysis Plant it commissioned. Following the roadmap, the 4th Coke Battery is scheduled for commissioning in early 2025.
Süleyman Savaş Erdem, General Manager of OYAK, emphasized the company's commitment to “investing in the future” and said, “We are aware of our responsibilities to our country and the world. Despite challenging global economic and steel market conditions, we continue our transformation investments while maintaining employment and production.”
Türkiye's first and largest integrated flat steel producer, Erdemir, a member of OYAK Mining Metallurgy Companies, has accelerated its investments in alignment with its Net Zero Roadmap, announced at the start of 2024. Erdemir plans to close 2024 with an investment expenditure of US$ 1.1 billion, having successfully completed hydrogen injection into the 1st Blast Furnace in October and commissioning the pilot Pyrolysis Plant with a biochar production capacity of 7,000 tons/year.
A cautious 2025 for the steel industry
At a press conference held at the Erdemir facilities in Karadeniz Ereğli, the activities from the first year of the green steel production journey were outlined. Süleyman Savaş Erdem, General Manager of OYAK, in his remarks evaluating the global and Turkish steel industries, stated that Erdemir, Türkiye's global steel powerhouse, will complete the year with significant progress in green transformation investments despite the challenges faced by the global steel industry. Emphasizing Erdemir's leadership with its vision of “investing in the future”, Erdem shared the following message:
"2024 was a difficult year for the entire world. Pressure on global growth persists. In this period of slowing global demand and escalating trade wars, uncertainties about 2025 remain. Global developments, particularly in steel production, are shaping the industry's balance. China's declining demand for steel raises expectations of a cautious approach to the steel industry on a global scale for 2025.
All the fluctuations and losses in the global economy and steel industry inevitably affect our country, the world's eighth-largest steel producer, as well as domestic steel producers. However, Erdemir successfully limited the contraction in profitability margins under these challenging conditions. While the severe decline in global steel demand and rising operational costs forced some producers to reduce or even halt production indefinitely, resulting in job losses, Erdemir maintained its stability. It sustained production and employment during this difficult period while continuing its investments with determination.
Despite the uncertainties, we aim to sustain employment and production in 2025 by leveraging our adaptability and experience, continuing to invest in the future with innovative solutions, and contributing to the Turkish steel industry by advancing our green transformation journey with determination.”
Green transformation for sustainable steel
Mustafa Serdar Başoğlu, Member of the Board of Directors and Managing Director of Erdemir and İsdemir, highlighted that all investments made over the past eight years, including those in green transformation, aim to protect the country’s steel capacity and ensure sustainable production. Başoğlu said, “Steel production in integrated plants is a unique and significant challenge for producers worldwide. The average investment period for an integrated plant is 4.5 years. OYAK Mining Metallurgy Group’s total investment expenditure since 2016 has reached US$ 4.5 billion, with US$ 3.4 billion of this realized over the past four years, following the pandemic. The ongoing pelletizing plant investment in Bingöl Avnik is a key component of our green transformation roadmap. Once completed, this investment will enable us to achieve 80-85 percent self-sufficiency.”
Başoğlu emphasized the ongoing efforts to simultaneously enhance energy efficiency and reduce coal usage through improvements in production processes, stating: “We have planned US$ 3.2 billion in transformation investments by the end of 2030. This year, we will conclude with investment expenditures totaling US$ 1.1 billion, a significant portion of which is dedicated to green transformation initiatives.”
Başoğlu also noted that Erdemir's capacity utilization rate currently stands at 95 percent. “We recognize the importance of producing the steel that Türkiye needs domestically”, Başoğlu said, adding that the export rate has surpassed 20 percent this year, with shipments reaching 54 countries.
Critical steps in transformation
Niyazi Aşkın Peker, General Manager of Erdemir, highlighted that the company has taken a pioneering role in Türkiye's steel sector with the Net Zero Roadmap announced earlier this year, aligned with its environmental and sustainability responsibilities. Peker said:
“In line with the European Green Deal, we aim to reduce our carbon emissions per ton of crude steel by 25 percent by 2030, 40 percent by 2040, and achieve net zero emissions by 2050. Through process improvements, we aim to maximize energy efficiency by utilizing our own resources and maintain competitiveness in global markets by reducing dependence on foreign resources.”
Reflecting on a significant milestone achieved this year under the outlined roadmap, Peker shared:
“With innovative solutions and a forward-thinking approach, we successfully completed the hydrogen injection into the 1st Blast Furnace, marking a first in Türkiye. As one of only three steel producers in Europe to undertake a similar initiative, we are proud to bring this technological infrastructure to our country. We also initiated the development of alternative fuels to coal by commissioning our pilot Pyrolysis Plant, which has a biochar production capacity of 7,000 tons per year and aims to generate fuel and carbon resources from biomass. This plant will enable us to reduce emissions and costs by partially substituting fossil fuels used in our production processes. In the next step, we plan to commission the 4th Coke Battery at the start of 2025. This investment will replace the first and second batteries, which have been operational since Erdemir's establishment. With an annual capacity of 800,000 tons, the 4th Coke Battery will feature advanced technologies such as dust collection filter systems and high-level automation. This new infrastructure will enhance our environmental performance and coke production quality while reducing reliance on imported coke.”
Noting that solar power plant projects are progressing as part of sustainability investments, Peker reported plans to generate 3,170,215 megawatt-hours of electricity annually across 17 locations in 12 provinces. These projects include an SPP investment with a total installed capacity of 775 megawatts under Erdemir and 2,036 megawatts under OYAK Mining Metallurgy.
Accelerated its investments
Some of the investments made by Erdemir to drive both green transformation and efficiency include the following:
- 4th Coke Battery investment
- Blast furnace investments
- Steel mill investment
- Hot rolling mill investments
- Cold rolling mill investments
- Energy investments
- Other investments: Erdemir Port structural improvement and domestic wastewater treatment plant modernization
- Green transformation investments: No. 1 Blast Furnace hydrogen injection, pilot Pyrolysis Plant, pilot Briquetting Plant, syngas injection into blast furnaces, and electric arc furnace investment
Türkiye produces approximately 13.5 million tons of flat steel annually
- Türkiye has an installed production capacity of approximately 25 million tons of flat steel.
- Türkiye produces approximately 13.5 million tons of flat steel each year. With an annual consumption of around 19 million tons, the country meets part of its demand through imports.
- (2023 consumption: 19.5 million tons)
- Erdemir and İsdemir, part of OYAK Mining Metallurgy Companies, supply a significant portion of the country's demand, with an annual flat steel production of approximately 7 million tons.
- Steel, an essential product known for its high strength, flexibility, and lightness, serves as a fundamental input for many sectors, particularly construction, automotive, white goods, pipe profiles, rolling, general manufacturing, electrical-electronics, machinery, energy, heat appliances, shipbuilding, defense, packaging, and renewable energy.
