China Baowu to Present El Hadjar Rehabilitation Plan by September
The rehabilitation roadmap for the El Hadjar industrial complex, undertaken in partnership with China Baowu, the world's leading steel group, is scheduled for presentation to the Algerian government by the end of September. This significant industrial project targets the modernization of the historic El Hadjar complex in Annaba, aiming to transform it into a state-of-the-art, integrated facility for producing green steel. The initiative involves implementing advanced technology for low-carbon direct reduced iron (DRI) and green steel production, marking a strategic leap towards a more sustainable industrial future for Algeria.
The proposed partnership between Algeria's Société nationale de sidérurgie (SNS) and China Baowu is designed to enhance the complex's production capacities, improve operational performance, and integrate its industrial assets into the national steel industry ecosystem. It seeks to valorize national resources locally, establishing a direct link with major mining projects across Algeria, including the Gara Djebilet deposit. The process selected by the Chinese partner will transition from traditional coal to natural gas, with a future vision for incorporating renewable energies such as green hydrogen and solar power, signifying a novel approach that encompasses comprehensive industrial restructuring and a move towards low-carbon steelmaking.
Modernizing El Hadjar is identified as a strategic priority by the country's high authorities, aimed at bolstering industrial sovereignty, reducing reliance on imports, fostering economic growth, and creating both added value and employment opportunities. Minister of Industry Yahia Bachir underscored its foundational role in developing heavy industry. Intensive working meetings held in Algiers from August 10-12 formally established the late September deadline, during which China Baowu is set to present its final technological design, a draft Memorandum of Understanding, and a detailed operational roadmap. This roadmap will outline a precise timeline for the deployment of the project, including the phased modernization or dismantling of existing equipment, the construction of new green steel units, and plans for logistical integration with the Port of Annaba.
Algerian energy giants Sonatrach and Sonelgaz have already pledged their full support for the project upon the validation of the September roadmap. Sonatrach has committed to ensuring a secure gas supply for the future complex, which requires substantial gas volumes for the direct reduction process chosen by Baowu. The company will also provide necessary raw materials and fuels for logistics and heavy unit operations, while sharing expertise in Carbon Capture and Storage (CCS) to minimize the plant's immediate environmental footprint, pending the full transition to green hydrogen. Concurrently, Sonelgaz is tasked with designing and dimensioning the high-voltage connections essential for the new project's electric arc furnaces, which demand colossal and stable electrical power. Sonelgaz plans to deploy its engineering resources to establish specific electrical substations around the El Hadjar area, guaranteeing an uninterrupted power supply crucial for modern steelmaking. Their timely involvement will enable China Baowu to incorporate accurate and reliable energy cost and volume data into its project studies.
