As industries across Pakistan switch to renewables, Beco Steel Limited has joined the trend, signing an agreement with a renewable energy solutions provider to install a 2-megawatt (MW) solar power generation system at its Badami Bagh, Lahore plant.
The listed company disclosed the development in its notice to the bourse on Tuesday.
“We take immense pleasure to announce that Beco Steel Limited has executed an agreement with a renewable energy solutions provider for the installation of a 2MW solar power generation system,” read the notice.
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Beco said that the system will be installed at its plant premises located in Badami Bagh, Lahore. “The total capital expenditure for this project is estimated at approximately Rs121 million,” it said.
The company shared that this “strategic investment” in green energy is projected to generate annual savings of approximately Rs129.65 million on the company’s energy costs.
“The initiative will not only significantly reduce the company’s cost of production and enhance operational efficiency but will also contribute positively to environmental sustainability by reducing its carbon footprint.
“This step is a key component of the company’s long-term strategy to promote sustainable operations and maximize shareholder value,” it added.
Beco Steel Limited, formerly known as Ravi Textile Mills, is incorporated in Pakistan as a public limited company. BECO is an integrated steel producer with products ranging from scrap to billet to various end products, including speciality steel.
There has been a growing shift towards alternative energy sources in Pakistan, especially solar, which has become increasingly popular among residential and commercial sectors.
This rising trend has left decision-makers grappling with its implications for the national grid and energy sector, as electricity consumption remains stagnant.
Nonetheless, several projects have been initiated to exploit this relatively cheaper energy source.
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Last month, Kohinoor Mills Limited (KML) announced plans to install a 7.2-megawatt solar power system as part of its push for sustainable operations and cost efficiency.
Dewan Cement Limited successfully commissioned a 6MW solar power system at its manufacturing facility in Karachi.
In May, International Steels Limited (ISL), a subsidiary of International Industries Limited, completed and activated a 6.4-megawatt (MW) solar power project at its factory in Karachi.
In March, Tariq Corporation Limited (TCORP), engaged in the manufacturing of sugar and its by-products, announced plans to set up a 200KW solar power system at its facility.
