ERG Ferroalloy-Gas Utilisation Plant to Boost Efficiency and Cut Emissions in Kazakhstan

ERG to build $92mn ferroalloy-gas utilisation plant in Kazakhstan, converting flared gas into electricity by 2026.
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ERG Ferroalloy-Gas Utilisation Plant to Boost Efficiency and Cut Emissions in Kazakhstan
ERG

Kazchrome to Convert Flared Gas Into Clean Power with 80MW Plant

Eurasian Resources Group (ERG) has announced plans to construct a new ferroalloy-gas utilisation plant, reinforcing its position in energy-efficient ferroalloy production. The 80MW facility, to be located within Kazchrome’s Aktobe Ferroalloy Plant, will convert 600,000m³ of flared gas into electricity. ERG signed an EPC contract with China Tianchen Engineering Corporation and expects to complete the $92 million project by 2026.

Power Self-Sufficiency and Cost Reduction Strategy

The ERG ferroalloy-gas utilisation plant will enable the company to increase self-generation capacity, reducing reliance on external power sources. As a result, Kazchrome’s operational costs will decline, improving its already industry-leading position in cost efficiency. The project also supports ERG’s carbon reduction goals by capturing and utilizing gas that would otherwise be flared.

Competitive Edge in the Global Ferrochrome Market

Kazchrome is already recognized for having the lowest production costs among ferrochrome suppliers to Europe. The addition of the ERG ferroalloy-gas utilisation plant will further enhance its cost advantage, making it difficult for competitors — particularly Indian producers — to match pricing. This strategic investment ensures ERG maintains long-term competitiveness while aligning with sustainability and energy efficiency targets.

The Metalnomist Commentary

The ERG ferroalloy-gas utilisation plant reflects a growing trend toward energy recovery in heavy industry. As environmental regulations tighten, ERG’s investment strengthens both its sustainability profile and cost leadership in global ferroalloy markets.

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