Meranti, a Singapore-based steel manufacturer, plans to establish Southeast Asia's first green flat steel plant in Thailand, aiming to enhance sustainable steel production in the region. The facility will utilize hydrogen to replace coal and employ electric arc furnace technology powered by renewable energy sources, reducing Thailand's reliance on imported steel and supporting decarbonization efforts in the electric vehicle industry.
Expected to begin operations in 2027, the plant will have an annual production capacity of 2 million tons, resulting in a yearly reduction of 4 million tons of carbon emissions—equivalent to planting approximately 200 million trees annually. Meranti's green steel initiative focuses on producing steel without fossil fuels, using green hydrogen in the production of Direct Reduced Iron (DRI), and significantly reducing carbon emissions compared to traditional methods.
With over 200 years of industry experience, Meranti is forming strategic partnerships, including collaborations with Green Steel of Western Australia, Global Power Synergy in Thailand, and Italian steelmaker Danieli, to support its green steel project.
Thailand currently imports around 11 million tons of steel annually, representing about 60% of its total demand. The country's steel production capacity utilization has dropped below 30%, reaching a seven-year low of 29.3%. Meranti’s green steel initiative aims to reduce import dependence and capitalize on the rising demand for low-carbon materials in automobile manufacturing, particularly as the Thai government promotes electric vehicles. The demand for green steel is projected to increase significantly, with low-carbon steel expected to exceed 25% of flat steel production by 2040.
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