Turkish Steelmakers to Build Solar Power Plants, Gain Carbon Tax Exemption
Tosyalı Demir Çelik and Yazıcı Demir Çelik, two leading Turkish steelmakers, are set to build solar power plants to meet their entire electricity needs, positioning themselves advantageously in shipping products to Western markets. By investing in renewable energy, the companies will be exempt from the European Union's Carbon Border Adjustment Mechanism (CBAM) and other carbon taxes, giving them a competitive edge.
Tosyalı Demir Çelik is investing EUR 48.3 million in an 88 MW solar power plant in Toprakkale, Osmaniye province. The project, spanning 147 hectares in the Cebelibereket Erzin industrial zone, is expected to generate 245 GWh annually, supplying the company’s production facility. The construction is anticipated to take 17 months, with a planned lifespan of 25 years.
Yazıcı Demir Çelik, part of Diler Holding, has signed a turnkey deal with YEO Technology to build solar plants of 50 MW in Afyon and 60 MW in Ankara. The agreement covers location identification, obtaining permits, conducting an environmental impact assessment, and constructing the photovoltaic plant and related infrastructure.
Both companies operate electric arc furnaces, which are easier to decarbonize and emit fewer greenhouse gases than traditional blast furnaces. The Željezara Nikšić steel plant in Montenegro, formerly owned by Tosçelik of Tosyalı Holding, was closed a few years ago, and the struggling ArcelorMittal Zenica steelworks in Bosnia and Herzegovina highlight the challenges in the region.
Source: Balkan Green Energy News
