Toplana Zenica started trial operation – supply of thermal energy to the City heating from the new, gas boilers

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Press Conference on the announcement of the start of the trial operation of Toplana Zenica was held on December 1, 2021.

The participants of the press conference were: Nikhil Mehta, CEO of ArcelorMittal Zenica; Emir Krgo, CEO of Toplana Zenica; Mikko Marttala, Chief Financial Officer of KPA Unicon Finland; Manuela Naessl, Director of the European Bank for Reconstruction and Development (EBRD) Office for BiH and Selver Keleštura, Secretary of the City Administration of Zenica.

Toplana Zenica project is a “joint venture” project, and the partners are ArcelorMittal Zenica with 50% of shares, the City of Zenica with 20% of shares, KPA Unicon and FinnFund with 15% of shares each in the company.

The total value of the project is approx. EUR 53 million, of which EUR 41 million is an EBRD loan, and the loan is secured by a guarantee from the ArcelorMittal Group. The remaining EUR 12 million is secured by the direct investment of the partners in the joint venture.

The project is of great importance and represents a positive step forward for ArcelorMittal Zenica and the City of Zenica. It will bring much more reliable heating to the city, and will also significantly improve air quality and reduce pollution of the Bosna River.

The outdated and unreliable heating system that is currently in use and that ArcelorMittal Zenica inherited from its predecessors, is currently the largest source of SO2 emissions coming from the factory, due to the use of coal. The new project reduces SO2 emissions by 90% and CO2 emissions by 25%.

The new system, consisting of 3 boilers and auxiliary plants, has a total capacity of 150 t of steam/hour. Boilers run on coke oven gas and blast furnace gas, and if necessary, natural gas. The new plant has a DeSOx plant for treatment of SO and Nox.

The system eliminates the use of thermal coal and is designed to meet all relevant EU environmental standards, as well as legal regulations in BiH. This is another step in fulfilling the requirements set before us by the environmental permit.

Nikhil Mehta, CEO of ArcelorMittal Zenica, stated:

I would like to thank the local team, our Finnish partners and others who participated and supported the project. Now the most important thing is to get the use permit and I hope that the Government of the Federation of BiH, aware of the importance of this project for the people of Zenica, but also the Company, will give us the necessary support to get the permit on time.

• CEO of Toplana Zenica Emir Krgo points out that the removal of coal usage in the work process at AMZ and to heat the City will drastically reduce the emission of all harmful substances into the air and will almost completely stop the emission of dust, while the emission of sulfur dioxide will be reduced by more than 10 times.

•  Selver Keleštura, Secretary of the City Administration: Toplana represents a new page in the city’s heating. AMZ was a reliable partner and we never doubted the completion of this project, said Keleštura, who added that the effects for the local community will be both environmental and economic.

• EBRD Director for BiH Manuela Naessl: We wanted to make the best use of the energy sources present in this city. The city can take advantage of all the benefits of this project, and one of them is heating.

Contact us

ArcelorMittal Zenica

Bulevar Kralja Tvrtka I br. 17

72000 Zenica

Bosnia and Herzegovina

+387 32 467 208