Understanding the demand for Green Steel, page-157

Sabah to get RM19bil green steel production plant | Free Malaysia Today (FMT)


PETALING JAYA (Malaysia): Steel production will become more environmentally friendly with the setting up of a new US$4.39 billion (RM19.6 billion) production facility in Sabah soon.Under the appropriately named “green steel project”, the plant will replace coke and coal with natural gas, and subsequently hydrogen in the future, as a reducing agent.

The green steel project was initiated by Esteel to reduce the carbon footprint of steel production.The project covers the entire production chain from iron ore concentration, palletising and direct reduced iron (DRI) to steelmaking, steel rolling and high-end steel processing.The use of natural gas will ensure that carbon emission from the production of steel drops by 70% but the facility will eventually turn to green hydrogen smelting, which leads to near zero carbon emission.Steel production currently accounts for about 8% of the world’s total carbon emission, making it the biggest contributor of the pollutant.Under the agreement with SOGDC, Esteel will construct an integrated green steel plant on a 180ha site in the industrial park.Investment in the three-phase project is expected to top US$4.39 billion (RM19.6 billion)."

Hi Malaysia, Port Whyalla is only 5000km from Sabah. Would you like some high grade magnetite for your steel plant? LOL. That is a pretty hefty investment for Malaysia. It is really interesting that southeast Asia are now investing heavily in green steel. I find that fascinating.