Provision of a long-term loan of up to USD 81 million to Kryvyi Rih Industrial Gas LLC (the "Company"), a Joint Venture with majority ownership by Air Products & Chemicals Inc., a company registered in the USA. Subject to finalisation of commercial agreements, the Company will design, construct and operate an on-site air separation unit (the "Project") to be located in Kryvyi Rih.
The Project will employ modern, state-of-the-art technology to safely and reliably produce industrial gases, for ArcelorMittal's Kryvyi Rih steel works and other customers in Ukraine and beyond. By replacing existing industrial gas production on ArcelorMittal's site, the new facility will reduce the annual energy consumption of the steel plant.
ETI score: 65
ETI score: 65
The transition impact of the proposed Project will derive from emission reduction and energy efficiency objectives under the Green quality. The air separation unit will be designed in line with the European Industrial Gas Association technological guidelines and will be among the first of its kind to be installed in Ukraine. The Project is expected to result in CO2 emission savings in excess of 60,000 tonnes per annum through energy efficiency gains of the steel works.
KRYVYI RIH INDUSTRIAL GAS LLC
Kryvyi Rih Industrial Gas LLC is a joint venture with majority ownership by Air Products and Chemicals, Inc., a company registered in USA.
EBRD Finance Summary
The EBRD to provide up to USD 81 million senior loan with the proceeds to be used to finance the construction of the air separation unit.
Total Project Cost
Estimated to be in excess USD 100,000,000.00
EBRD support is additional because it offers a tailored financing necessary to structure the Project, while its long-term relationship with the investors and end-users provides comfort by mitigating political risks and enabling technological innovations.
Environmental and Social Summary
Categorised B (2014 ESP). Environmental and social (E&S) impacts associated with the Project are site specific, and readily identified and addressed through well-defined mitigation measures.
The Company will construct and operate a new air separation unit (ASU) at the existing steel works of ArcelorMittal in Kryvyi Rih (AMKR), Ukraine. The current Project is aimed in part at replacing old installations and is part of a complex modernization of the steel plant to secure AMKR steel production as per strategic plan. Environmental and social (E&S) impacts associated with the Project are site specific, and readily identified and addressed through well-defined mitigation measures.
In-house ESDD has been undertaken of the ASU Project to review the planned designs, construction and operation procedures, as well as to review the permits and other regulatory requirements associated with the Project. The new ASU unit is located within the AMKR complex and will have limited impact on sensitive receptors. It is located away from residential areas, will have limited social impacts, and will not be associated with resettlement.
The ongoing ESDD confirmed that the investors, and subsequently the Company, have the capacity to implement the Bank's PRs through well-developed EHS and HR systems. Environmental, Quality, Energy and occupational health and safety issues will be managed through systems certified to ISO 14001, ISO 9001, ISO 50001 and ISO 45001 standards. The necessary resources and capacities are in place to implement the aforementioned systems.
In terms of environmental performance, the proposed technology will be amongst the best available in the sector. The Company will operate in line with both the Ukrainian National requirements and in line with the EU European Industrial Gas Association guidelines and relevant EU Best Available Techniques (BAT as appropriate); and will attain improved energy efficiency and lower emissions. The Company will undertake an Environmental Impact Assessment (EIA) for the investment and obtain the relevant permits from Competent Authorities prior to start of construction. The site itself is located within the existing ArcelorMittal steel works to which the Bank has provided financing in the past (DTM 47584) and the steel plant is implementing the agreed Environmental and Social Action Plan (ESAP) aimed to ensure compliance with National and EU environmental standards, and best industry practises.
The Bank will monitor the Project implementation through monitoring visits and reports issued until the construction completion.
Non-Technical Summary (NTS) attached.
Technical Cooperation and Grant Financing
Company Contact Information
Telephone:+38 044 489 9722
Fax: +38 044 489 9743
53-B Geroyiv Stalingradu, office 2, Kyiv 04213, Ukraine
PSD last updated
06 Oct 2020
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Independent Project Accountability Mechanism (IPAM)
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