How BSRM is paving the way for green industrialisation

As part of its efforts toward pollution prevention and green industrialisation, BSRM, one of the country's leading steel producers, is installing solar panels with an investment of Tk100 crore to generate 16 megawatts of electricity on its factory rooftops.

Company officials say if the government provides land, the group aims to establish a 250-megawatt solar power plant to meet its entire energy demand.

The company is already engaged in eco-friendly production by exporting dust and mill scale (iron oxide) generated during steel manufacturing, repurposing slag waste into construction materials and conserving water through a zero-discharge process by building water treatment plants to recycle industrial water, they say.

According to BSRM sources, a 114-kilowatt solar power system was installed early last year at its water treatment plant intake station on the banks of the Feni River, while another 3.32-megawatt system was set up in November at the BSRM Wire Limited factory in Chattogram's Mirsarai.

Additionally, equipment procurement is underway to install another 4.9-megawatt solar power system at the steel factory in Mirsarai this year, with production expected to commence in April.

As the largest single consumer of electricity in the country, BSRM's power demand stands at 250 megawatts. With all factories operating at full capacity, the group pays approximately Tk150 crore in electricity bills each month.

BSRM officials say that as part of their plan to establish a large-scale solar power plant, they have already initiated the process to secure government land allocation.

Tapan Sengupta, deputy managing director of BSRM, told The Business Standard, "The government has decided to allocate some land from major economic zones for solar power generation. We have submitted a proposal requesting land from the government."

"If we receive the land, we plan to generate the full 250 megawatts from the solar energy sector. BSRM is ready to make significant investments in the solar energy sector," he said.

BSRM's focus on recycling

The steel production process generates several types of waste that are harmful to the environment. For example, producing billets (crude steel) by melting scrap generates pollutants such as dust, mill scale (iron oxide), and slag. Additionally, the water used in the production process becomes wastewater, contributing to water pollution.

Officials say that for the past two decades, BSRM has been controlling dust emissions by implementing Japanese technology, investing Tk250 crore in the process. The company exports 12,000 tonnes of this industrial dust annually, earning $9 million in revenue.

Mill scale (iron oxide) was traditionally dumped in soil, reducing fertility if it came into contact with arable land. This posed a threat not only to the environment but also to the country's agricultural security. However, BSRM officials say they now export 24,000 tonnes of mill scale abroad annually, mitigating this risk.

Moreover, the process of producing billets from scrap generates a type of waste called slag (induction furnace slag), which has a soil-like appearance but is solid. BSRM has repurposed this waste as a construction material, offering an alternative to bricks.

A study conducted by the Islamic University of Technology in Gazipur found that using slag instead of bricks in concrete production can reduce carbon emissions by up to 35% and lower costs by at least 30%.

BSRM has set up a slag treatment plant in Mirsarai, Chattogram, at a cost of around Tk25 crore. The plant produces around 1.2 lakh tonnes of slag annually, all of which is used as construction material. For this initiative, BSRM received the SDG Brand Champion Awards 2023.

According to company sources, to reduce reliance on groundwater, it has installed water treatment plants in all its factories, investing Tk150 crore.

The company has developed an intake station on five acres of land along the Feni River in Mirsarai, spending Tk85 crore to secure surface water resources. The company has also invested in high-quality water treatment plants for its factories, making 373,700 cubic metres of water reusable for industrial purposes annually, thereby minimising water wastage.

Tapan Sengupta, deputy managing director of BSRM, said, "We have prioritised recycling, which significantly reduces carbon emissions. To address any remaining environmental risks, BSRM is making substantial investments.

"International consulting firms are collaborating with us to establish a world-class green industry while ensuring environmental conservation. Their recommendations are being implemented."

BSRM has secured a low-interest loan of $50 million from the Japan International Cooperation Agency (JICA). As part of JICA's initiative to promote environmentally-friendly (green) industries, BSRM became the first private-sector company in Bangladesh to receive such a loan.

Long legacy in steel production

Established in 1952 as "East Bengal Steel Re-Rolling Mills", the company has a long history spanning 73 years. After Bangladesh gained independence in 1971, it changed its name to Bangladesh Steel Re-Rolling Mills (BSRM). Since then, its business has expanded over time.

Both Bangladesh Steel Re-Rolling Mills Limited (BSRM) and BSRM Steel Limited are listed on the stock exchange. In addition to producing steel products, they also manufacture steel raw materials like billets (crude steel).

Currently, the industrial group has three rolling mills in Nasirabad, Fouzderhat and Mirsharai, with an annual production capacity of 24 lakh tonnes of steel products. Additionally, four melting plants – two in Nasirabad and two in Mirsharai – have a combined annual capacity of 24 lakh tonnes of billets. Furthermore, BSRM operates another factory which produces wire products under BSRM Wire Limited.