Posted on 02 Dec 2022
Esteel to build Malaysian green steel projectSingapore-based Esteel Enterprise, will through its subsidiary in Malaysia Esteel Enterprise Sabah (Esteel Sabah), invest $4.39 billion in a green steel project in Sabah, Malaysia, Kallanish notes.
Phase I of the project will produce 2.5 million tonnes/year of hot briquetted iron (HBI) and have multiple facilities such as an iron ore concentration plant, pelletizing plant, HBI plant, jetty, support facilities, etc.
Phase I of the project commences in Q4 of 2023 and is expected to be completed by Q4 of 2025 with an investment value of $1.29 billion.
Upon completion Of phase I, phase II & III will have another two sets of facilities for direct reduced iron (DRI), with 2.5m t/y capacity each, and will include steelmaking, steel rolling, high-end steel processing and waste recycling, etc.
The green steel project was initiated by Esteel Sabah to develop the whole green steel industry chain which includes iron ore concentration, palletizing, DRI, steelmaking, steel rolling and high-end steel processing.
The plant would use natural gas as a reducing agent instead of coke and coal, which reduces carbon emission by 70% and is low carbon, efficient and environmentally friendly. In the future, it will gradually transform to green hydrogen smelting with near zero carbon emissions.
Esteel Sabah has also established a land-lease agreement with Sabah Oil & Gas Development Corporation, a Malaysian state government agency, for the green steel project.
Esteel Sabah is now seeking to construct an integrated green steel industry occupying 446 acres of land for phase I of the project inside Sabah Oil & Gas Industrial Park (SOGIP), an industrial area for downstream oil and gas in the district of Sipitang, Sabah.
Source:Kallanish
