EBRD may issue $81 mln to Ukrainian subsidiary of Air Products' and ArcelorMittal's JV
The European Bank for Reconstruction and Development (EBRD) could provide a long-term loan of $81 million for the construction of an air separation unit of Kryvy Rih Industrial Gas LLC (Kyiv), created last October by the Dutch company Krig Holdings B.V., a joint venture of American-based Air Products and Chemicals, Inc. and ArcelorMittal, in which Air Products is the majority shareholder.
"Subject to the finalization of commercial agreements, the company will design, construct and operate an on-site air separation unit to be located in Kryvy Rih," the bank said on its website.
"The project will employ modern, state-of-the-art technology to safely and reliably produce industrial gases, for ArcelorMittal 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," the report says.
"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 carbon dioxide emission savings in excess of 60,000 tonnes per annum through energy efficiency gains of the steel works," the bank said.
The total cost of the project is estimated at more than $100 million, the bank said.
It is expected that the EBRD Board of Directors will consider this project on July 22 this year.