It is a major project that China Baowu Group, one of the world’s largest steel producers, is preparing to execute in Algeria in partnership with the National Steel Company (SNS). The Chinese leader is set to establish a presence in Algeria through the construction of an integrated production complex for low-carbon direct reduced iron and green steel, alongside a commitment to ensure the transfer of know-how and modern technologies to Algeria.
This topic was central to discussions Tuesday between Minister of State, Minister of Hydrocarbons Mohamed Arkab and a delegation from the Chinese steel conglomerate China Baowu Group, currently on a working visit to Algeria, the ministry indicated Tuesday in a press release, noting the attendance of Sonatrach’s CEO alongside group executives, ministry officials, and representatives from the National Steel Company (SNS).
The Chinese delegation presented its international expertise in producing high-quality steel and green steel, expressing its readiness to transfer technical expertise and modern technologies to Algeria in order to assist in developing a low-carbon steel industry and bolster the competitiveness of domestic products.
The execution of this strategic industrial project relies on integrating national energy resources with cutting-edge industrial technologies, notably natural gas, renewable energy, and decarbonization solutions, specified the same source. It noted that the meeting also allowed both sides to examine cooperation prospects between Sonatrach and China Baowu regarding the support of proposed industrial projects, specifically through securing their requirements in natural gas, petroleum and petrochemical products, and raw materials, as well as deploying industrial solutions aimed at lowering carbon emissions.
===== A Low-Carbon Steel Industry
Both parties reviewed cooperation opportunities across several domains of mutual interest, particularly innovative technological solutions intended to reduce the carbon footprint of heavy industries and the adoption of modern methods designed to eliminate and abate emissions, in line with Algeria’s commitments to energy transition and sustainable development, emphasized the Hydrocarbons Department.
The “special” importance accorded by the sector to establishing high-value partnerships with major international industrial groups was highlighted by the minister, who stressed that “these partnerships must facilitate technology transfer, the localization of strategic industries, and the enhancement of local content.”
Furthermore, he pointed to the availability of substantial energy resources in Algeria, the existence of developed infrastructure in the natural gas domain, and the presence of highly skilled national talent in processing industries, complemented by Sonatrach’s environmental protection and carbon capture and storage programs. This potential, combined with the strength of Algerian-Chinese diplomatic relations, constitutes, according to Mr. Arkab, “essential elements for the success of future industrial ventures, particularly in the steel sector.”
According to the Hydrocarbons Department, the encounter between both sides aligns with the exploration of opportunities to set up industrial and investment partnerships between national enterprises and the Chinese group, specifically in ventures tied to developing a low-carbon steel industry. This initiative falls, as noted, within the framework of national policy guidelines aimed at reinforcing local industrialization, raising the added value of national resources, and promoting processing industries.