Arkab Opens Door to Strategic China Baowu Partnership on Low-Carbon Steel and Green Iron
Algeria is exploring a strategic industrial partnership with Chinese steel giant China Baowu to develop low-carbon iron and green steel production, as part of efforts to expand domestic industrial value chains, attract advanced technologies and accelerate the decarbonisation of heavy industry.
By Dr. Hana Saada
ALGIERS – Algeria’s Minister of State and Minister of Hydrocarbons, Mohamed Arkab, received a delegation from Chinese steelmaker China Baowu on Tuesday to examine prospects for industrial cooperation and investment in Algeria, with discussions focusing on projects aimed at developing a lower-carbon steel industry.
The meeting, held at the ministry’s headquarters, was attended by Sonatrach Chief Executive Officer Nouredine Daoudi, senior officials from the ministry and Sonatrach, as well as representatives of the National Iron Company (SNS).
The talks centred on potential projects that could deepen partnerships between Algerian companies and China Baowu, one of the world’s leading steel producers, particularly in the development of low-emission steelmaking.
The initiative forms part of Algeria’s broader strategy to accelerate industrialisation, increase the added value generated from national resources, expand processing industries and develop competitive and sustainable industrial sectors.
Toward a new generation of steel projects
The two sides explored prospects for cooperation in innovative technologies designed to reduce the carbon footprint of heavy industries, with particular emphasis on modern solutions capable of cutting and, ultimately, managing industrial emissions in line with Algeria’s energy-transition and sustainable-development objectives.
Arkab stressed the importance attached by the hydrocarbons sector to building high-quality industrial partnerships with major international groups that can support technology transfer, the localisation of strategic industries and the expansion of local content.
He also highlighted Algeria’s advantages as a potential destination for such projects, including substantial energy resources, an extensive gas infrastructure and national expertise in processing industries.
The minister also pointed to Sonatrach’s programmes in environmental protection, carbon capture and carbon storage as additional assets supporting the development of lower-carbon industrial projects.
The longstanding and close relations between Algeria and China were also highlighted as a favourable environment for major industrial investments, particularly in the iron and steel sector.
Sonatrach to support prospective investments
The discussions also examined the potential role of Sonatrach in supporting projects envisaged by China Baowu and its Algerian partners.
Such support could include securing supplies of natural gas, petroleum products, petrochemicals and raw materials, as well as providing energy and industrial solutions aimed at reducing the carbon intensity of future production facilities.
China Baowu, for its part, presented its international expertise in high-quality steel production and technologies associated with green steel. The Chinese group reaffirmed its readiness to contribute its expertise and advanced technologies to the development of Algeria’s steel industry.
Integrated low-carbon iron and green steel complex under consideration
A central focus of the talks was a strategic industrial project being considered in partnership with the National Iron Company (SNS): the construction in Algeria of an integrated complex dedicated to producing low-carbon direct-reduced iron and green steel.
The proposed project would combine Algeria’s energy resources with next-generation steelmaking technologies. It could draw on natural gas, renewable energy and decarbonisation technologies to significantly reduce the environmental footprint of steel production.
The initiative would support Algeria’s efforts to strengthen its domestic iron and steel value chain while adapting to increasingly stringent international requirements for industrial decarbonisation.
The prospective cooperation with China Baowu could therefore mark another step in the development of a more modern, competitive and lower-carbon Algerian steel industry, while strengthening technology transfer and domestic industrial integration.
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