Memorandum of Understanding (MoU) between Romanian natural gas producer Romgaz and Liberty Galati, the largest steel mill in Romania owned by UK-based Liberty Steel 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.
Romgaz CEO Adrian Volintiru said that this partnership is in line with Romgaz’ priorities in the long-term development strategy through which the company wants to diversify the natural gas capitalization chains at a higher level. The investment is an important one at national level and represents a first step of Romania’s positioning on the map of Europe in green steel production. Such investments lead to horizontal developments of many economic sectors and implicitly a motivation for Romgaz to amplify exploration-production programs.