The Azerbaijan Steel Company Azerbaijan Metal Company (AzMC) project to build Azerbaijan's first large-scale hot briquetted iron (HBI) production plant has reached an important milestone with the completion of a feasibility study of the project, which confirmed its technical and economic viability and paved the way for the next stages of design and implementation.
The project is planned with an annual capacity of 2 million tons
The project being developed in the Shamkir region of Azerbaijan provides for the construction of a GBJ plant with an annual production capacity of 2 million tons. The plant is expected to be commissioned at the end of 2029 and positions Azerbaijan as a developing producer of high-quality metals for the global steel industry.
According to a feasibility study prepared by Sinosteel Equipment & Engineering Co., Ltd. under an agreement signed in Beijing last November, the total capital cost of the project is estimated at $800 million. After commissioning, the plant is expected to contribute about $1 billion to Azerbaijan's GDP per year, while creating about 1,600 direct and indirect jobs.
It is expected that a significant part of the investments required for the project will be financed through international credit lines, which will allow AzMC to optimize its capital expenditures. Since 50 percent of AzMC's shares are owned by the state, it is expected that such a financing structure will also support the financial efficiency of the company. China's Sinosure and Italy's SACE were appointed partners of the export credit agency for the project, providing export credit insurance and guarantee support, while ING Bank was appointed global coordinator.
ENERGIRON technology supports sustainable development goals
One of the key elements of the feasibility study was the evaluation of the ENERGIRON Zero Reformer (ZR) technology, jointly developed by Tenova and Danieli. Internationally recognized for its high efficiency, operational flexibility and reduced environmental impact, the ENERGIRON process enables the production of direct reduction iron (DRI) and HBI with significantly lower energy consumption and CO₂ emissions compared to traditional production routes.
The feasibility study confirmed the technical and economic advantages of using ENERGIRON Zero Reformer technology for the AzMC project, and also confirmed
