In August, ZDAS received an advance payment for the construction of a 100 MW energy source for the Magnitogorsk Iron & Steel Works (MMK) in the total amount of EUR 172 million. With its value, the project represents the most significant order in the company’s recent history and is also one of the largest export projects from the Czech Republic to the Russian Federation in the last fifteen years.
ZDAS has become the general supplier of energy sources based on steam turbines with the subsequent production of compressed air. The own source will process blast furnace gases from the newly built blast furnace on 3 steam boilers, each of which has an output of 220 T/h. The steam produced will be used to generate electricity on two 50MW steam turbines from Siemens and to produce compressed air on three turbochargers with instructional turbines, also from Siemens. The agreement was signed in March 2020, but the coronavirus pandemic caused an annual shift. A key point in the implementation of the project after the signing of the contract was the issuance of a bank guarantee for the advance prepared and issued for this project by the International Investment Bank (IIB). An important step was also to express support for our parent company CITIC Europe Holding a.s.
The first phase of the basic design was handed over and paid by the customer, and at the same time the contract price was increased by EUR 14 million due to inflation. During December, site preparations and construction equipment will begin. The whole project will be implemented by the end of 2024 and represents a significant shift in the development of energy projects for ZDAS.