PT. Gunung Raja Paksi Tbk

世界银行国际金融公司与印尼钢厂签署绿色融资协议

Reuters.com, 5 September 2024

The International Finance Corporation (IFC) has signed an agreement with Indonesian steelmaker PT Gunung Raja Paksi Tbk (GRP) (GGRP.JK), opens new tab to support its shift to lower-carbon production and help it access green steel markets, it said on Thursday. In its first investment in the Asian steel sector for more than a decade, IFC will provide $60 million to help upgrade GRP's electric arc furnace (EAF) and boost energy efficiency, and will also explore ways to finance the decommissioning of GRP's blast furnace.

IFC said its investment in Indonesia's largest private domestically-owned steel manufacturer could be the first of many projects aimed at tackling climate warming CO2 emissions in the steel industry. Antonio Della Pelle, IFC's senior operations officer, said the World Bank's financing arm plans to roll out similar projects and "drive sector-wide decarbonisation" through the use of EAF technology, which uses electricity rather than the coal that fuels traditional blast furnaces, bringing down emissions. IFC will also help GRP improve the performance of its current EAF operations and identify the products and sectors willing to pay a green premium on steel, he said.

Read More: https://www.reuters.com/business/environment/world-banks-ifc-signs-green-financing-deal-with-indonesian-steel-mill-2024-09-04/