GPH Ispat pioneers green steel in Bangladesh with most advanced technology
This innovation has enabled the company to significantly cut carbon emissions and energy use in steel production – a sector globally known for its high carbon footprint
Highlights:
- GPH Ispat adopted Quantum Electric Arc Furnace, cutting emissions drastically
- Scrap recycling reduces carbon emissions by 1.67 tonnes per tonne
- Plant produces 10 lakh tonnes annually; exports steel to China
- 600-grade rods reduce rebar use, costs, and improve safety
- Rainwater harvesting, reforestation, and Zero Liquid Discharge conserve resources
- Solar power, REC trading reduce carbon footprint and energy costs
GPH Ispat Limited has set a new benchmark in the country's steel industry by adopting the world's most advanced Quantum Electric Arc Furnace (Q-EAF) technology to produce environmentally friendly rebar.
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This innovation has enabled the company to significantly cut carbon emissions and energy use in steel production – a sector globally known for its high carbon footprint.
By recycling scrap metal instead of relying solely on raw iron, GPH Ispat has reduced carbon emissions by 1.67 tonnes per tonne of steel produced. Moreover, the advanced manufacturing process has enabled the company to reduce its natural gas and electricity consumption by up to 50%, officials said.
Located on a 150-acre site in Sitakunda upazila of Chattogram, GPH Ispat's plant has an annual production capacity of 10 lakh tonnes. The company has already exported its steel products to China – a rare feat for a Bangladeshi steelmaker. The Quantum Electric Arc Furnace was installed in 2020, marking the first such installation in Asia and only the second in the world. The system is both energy-efficient and environmentally sustainable, representing an investment of about Tk2,500 crore.
Cutting emissions and saving energy
According to company data, the Q-EAF technology transfers billets directly from casting to rolling, reducing the need for reheating and saving up to 2.5 times more gas compared to conventional methods. Pre-heating scrap metal lowers power consumption by 50% and gas use by more than 50%, saving around 26.46 million cubic metres of gas per year. The process also prevents slag contamination, resulting in purer steel and reduced waste and greenhouse gas emissions.
Producing high-strength, sustainable rods
GPH Ispat now markets high-strength 600-grade rod under the brand GPH Quantum. GPH rods were used in major infrastructure projects such as the Padma Bridge, Dhaka Metro Rail, Dhaka Elevated Expressway, and the Third Terminal of Hazrat Shahjalal International Airport.
Mashiur Rahman Bhuiyan, head of Quality Control and R&D at GPH Ispat, told TBS that the company is the first in Bangladesh to produce and market 600-grade rod. The GPH Quantum B600C-R and B600D-R variants make structures stronger, more durable, and safer while reducing rebar use by up to 30%, thus cutting construction costs. The rods also provide better earthquake resistance, improved flexibility, and easier weldability – all contributing to lower carbon emissions and sustainable construction.
Harnessing rainwater and protecting environment
To reduce dependency on groundwater, GPH Ispat began a rainwater conservation initiative in 2017. Based on research by the Institute of Water Modelling, the company built a 55-acre artificial reservoir in 2019 at the foothills behind its plant, capable of storing 15 lakh cubic metres of water. The collected water is purified and reused in production and daily operations.
The surrounding hills have been reforested with over 2,00,000 trees, including medicinal and fruit-bearing species, creating a biodiversity-friendly green belt that supports local livelihoods and wildlife. The conserved water is also used for fish farming, while a Zero Liquid Discharge (ZLD) system ensures that 90% of used water is recycled, preventing pollution and wastage.
This does not waste any water or cause pollution by dumping it down the drain. Typically, an average of about 14 lakh litres of water is required to produce 1,000 tonnes of rods.
Controlling air pollution
To combat air pollution, GPH Ispat has installed a state-of-the-art off-gas treatment plant that reduces emissions to as low as 10 micrograms per cubic metre – well below national and international standards. The system traps harmful gases such as nitrogen oxides and carbon monoxide, keeping the surrounding air clean. The company complies with International Finance Corporation standards and contributes directly to Bangladesh's Nationally Determined Contribution roadmap for carbon reduction.
Investing in renewable energy
GPH Ispat's Sitakunda facility requires around 100 megawatts of electricity per hour to operate. To reduce its carbon footprint and energy costs, the company has installed a 6.05-megawatt solar PV system on its factory rooftops. The system prevents about 89,000 tonnes of CO₂ emissions annually and supplies renewable power to GPH Ispat through its subsidiary, GPH Renewable Power Plant.
In October 2024, GPH Ispat became the first steel company in Bangladesh to earn revenue from Renewable Energy Certificate (REC) trading, generating nearly Tk20 lakh in just eight months. This milestone marked a significant step towards sustainable industrial practices and climate responsibility in the country.
When its journey began
Founded in 2006 as a private limited company, GPH Ispat became a public limited company in 2009 and was listed on the Dhaka and Chattogram stock exchanges in 2012. Today, it has more than 10,000 shareholders.
With its pioneering adoption of Q-EAF technology, investment in renewable energy, and commitment to sustainability, GPH Ispat is redefining Bangladesh's steel industry – leading the way towards a cleaner, more efficient, and environmentally responsible future.
