Romania: Liberty Galati needs finances to purchase CO2 certificates

, SEE Energy News

Under the EU ETS scheme, the largest steel mill in Romania Liberty Galati received CO2 certificates worth some 100 million euros. Liberty Galati, owned by UK-based Liberty Steel, urgently needs 100 million euros for the purchase of CO2 certificates, which the company sold last year.

The company has sold CO2 certificates, planning to repurchase certificated as lower price before the April 2021 deadline. Due to a sharp rise in the price of CO2 certificates in recent months, the company is in talks with its sister company – Liberty Ostrava, in a move to obtain the certificates left unused by the Czech company.

Last year, Romanian natural gas producer Romgaz and Liberty Galati agreed to sign a Memorandum of Understanding (MoU) which envisages the establishment of a joint venture with a view to the development of greenfield investment projects, respectively the development of a gas-fired combined heat and power (CHP) plants and renewable energy projects using wind and solar power. Through this MoU, the two companies agree to work together in order to ensure that there is a unified and receptive approach to the implementation of investment projects, which can be financed from both equity and from external sources through the joint venture type company that will seek to attract European funds through the Green Deal financing mechanism and/or through the financing schemes available in Romania. The implementation period of these investment projects will be between 3.5 and 4 years, in which both companies will cooperate and make joint efforts for investment projects to become a reality and a model of good practice in the Romanian economy.