Turkish Steel Giants Invest in Solar to Decarbonize and Beat EU Carbon Taxes
For decades, Tosyalı Demir Çelik and Yazıcı Demir Çelik have been at the forefront of Turkiye's steel industry, playing concrete roles in the country’s industrial growth. But now, with the future of steel production tied to sustainability, these companies are shifting gears. Faced with the European Union’s Carbon Border Adjustment Mechanism (CBAM), which will tax high-emission imports, both steelmakers are turning to solar power to keep their operations competitive and carbon-free. By powering their facilities with clean energy, they’re not only avoiding hefty EU tariffs but also leading a new era of green steel production in Turkiye.
Tosyalı Demir Çelik: Solar in Osmaniye
Tosyalı Demir Çelik, known for its global ambitions in green steel, is investing € 48.3 million in an 88 MW solar power plant located in Osmaniye province. Osmaniye, situated in southern Turkiye, is a hub for industry and energy production. Spread across 147 hectares, the plant will be part of the Cebelibereket Erzin industrial zone. The solar facility, equipped with 730 W photovoltaic panels, is expected to generate 245 GWh per year—enough to power Tosyalı’s steel operations in the region. The plant will be completed in 17 months, with a 25-year operational lifespan.
Yazıcı Demir Çelik: Turnkey Solar Projects in Afyon and Ankara
Yazıcı Demir Çelik, part of Diler Holding, is also making a major solar investment. The company has partnered with YEO Technology, a Turkish company specialising in renewable energy solutions, to develop two turnkey solar power plants. Turnkey projects encompass everything from site selection to construction, including environmental impact assessments, permits, and the installation of power lines and substations.
These plants, with a total capacity of 110 MW, will be located in Afyon and Ankara—two significant regions in central Turkiye known for their industrial activities. Once completed, the solar plants will cover Yazıcı’s entire energy needs for steel production.
Electric Arc Furnaces: The Cleaner Technology
Both Tosyalı and Yazıcı operate electric arc furnaces (EAFs) in their steelmaking processes. EAFs are far less carbon-intensive than traditional blast furnaces, producing up to 75% fewer greenhouse gas emissions because they use scrap steel instead of iron ore and coal. This technology makes decarbonizing steel production easier, and with solar power providing energy, both companies are making substantial progress toward achieving their decarbonization goals.
Solar Investment: A Response to EU Carbon Taxes
The move toward solar energy isn’t just about cutting emissions—it’s a calculated alignment to the EU’s CBAM. This mechanism will tax imports from countries with higher carbon footprints, making it crucial for Turkish steelmakers to embrace renewable energy if they want to remain competitive in the European market. Tosyalı and Yazıcı’s solar investments will exempt their steel from these taxes, ensuring that their products continue to be viable exports to the EU.
Could solar power drive the industry towards a cleaner, more efficient future for steel production? What changes might this bring to the industry?
