ISTANBUL, Jan 11 (Reuters) - Turkey's largest steelmaker Erdemir (EREGL.IS) on Thursday pledged to invest $3.2 billion to achieve a 25% cut in its emissions by 2030.
Under the plan announced on Thursday, the Erdemir integrated steel mill will reduce coal consumption by using biomass and natural gas while the company builds new electric arc furnaces at its facilities in southern and northern Turkey, said Serdar Basoglu, CFO of controlling shareholder OYAK Mining Metallurgy.
Current capacity of 9.5 million metric tons of crude steel is expected to jump to 13.5 million tons with the addition of new electric arc furnaces by 2030, he said.
Basoglu added that Erdemir's goal is to reduce scope 1 and 2 emissions by 40% by 2040 and become carbon neutral by 2050, three years before the country's target date for carbon neutrality.
The emission-reduction plans of Erdemir and Isdemir (ISDMR.IS), both controlled by the OYAK military pension fund, envisage more than 70% of the required investment being financed by foreign loans, Basoglu said.
The company could also consider issuing foreign currency bonds, he said.
