Turkish Kocaer invests in geothermal power for green steel production

Turkish merchant bar and steel sections producer Kocaer Steel has invested in a geothermal power plant in Horsunlu, Aydin, in accordance with its sustainable growth strategy, the company said May 16.

“To strengthen our position as a leading green steel production company in our industry, we aim to diversify our clean energy production resources with geothermal energy, following the solar power plants we own,” it said.

Kocaer wants to meet all of its self-consumption in energy via its own renewable production, thus gaining an advantage in international competition by reaching its energy independence and contributing to the future of society in environmental, social and governance issues, the company said.

Kocaer aims to increase its 15 million kWh/year production, to a total of 60 million kWh with an estimated 45 million kWh generation to be added after the completion of the first phase of the Horsunlu Geo-Thermal power plant.

With the completion of the investment, Kocaer will be able to provide all of its electricity consumption from its own solar and geothermal power plants by 2024, it said.

Kocaer is also aiming to raise the share of value-added steel products in its total steel production to 75% in 2024 with new investments.

Kocaer Steel currently has a combined steel production capacity of 800,000 mt/year at its three Turkish mills producing merchant bars, beams, channels and sections, of which 84% is exported.

Although Turkish mills’ rebar export prices rose sharply to $970/mt FOB on March 24, 2022, with the start of Russia-Ukraine war, prices have declined since, with Platts Turkish exported rebar assessed at $705/mt FOB March 15, according to S&P Global Commodity Insights data.