SEC and Esteel Sabah Collaborate on The Green Steel Project

Sabah Energy Corporation (SEC) has officially handed over the Heads of Agreement to Esteel Enterprise Sabah Sdn Bhd (Esteel Sabah), a subsidiary of Singapore’s Green Esteel Pte Ltd. This significant agreement solidifies SEC’s commitment to environmental responsibility and marks a major step towards cleaner and greener steel manufacturing.

Under the Heads of Agreement, SEC will supply 100 million standard cubic feet per day (mmscfd) of natural gas to Esteel Sabah’s steel manufacturing plant and an additional 50 mmscfd for the plant’s power generation over the next two decades. The ceremony, attended by key stakeholders and dignitaries, showcased the collaborative spirit driving this transformative project.

Representing SEC at the ceremony was Datuk Adzmir Abd Rahman, the Chief Executive Officer of SEC. Esteel Sabah was represented by its Managing Director, Mr. Xu Yihang. The ceremony was witnessed by the Chief Minister of Sabah, Datuk Seri Panglima Haji Hajiji Haji Noor, Minister of Industrial Development & Entrepreneurship Datuk Phoong Jin Zhe, SEC Chairman Datuk Annuar Ayub, and State Secretary Datuk Seri Panglima Sr. Safar Untong.

The Green Steel Project by Esteel Sabah is a comprehensive three-phase initiative valued at RM20 billion. The project stands out for its innovative approach, opting for natural gas as a reducing agent instead of traditional coke and coal. This decision is projected to reduce carbon emissions by an impressive 70%, positioning the steel manufacturing process as low carbon, efficient, and environmentally friendly.

The commitment to sustainability is not only a strategic move for Esteel Sabah but also aligns with SEC’s vision as one of the top state government-linked companies (GLCs). SEC actively promotes an economic landscape that is both thriving and sustainable. Through responsible business practices and strategic partnerships, SEC aims to contribute significantly to the growth and development of the region.

This collaboration signifies a pivotal moment in the transition towards greener industrial practices, emphasizing the importance of responsible corporate citizenship and innovation in addressing environmental challenges.