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Hajiji: Sabah’s first green steel project expected to take off by end 2024

Chief Minister Datuk Seri Hajiji Noor (centre) witnesses SEC chief executive officer Datuk Adzmir Abd Rahman (left) handing over the documents to Esteel Sabah managing director Xu Yihang (right). — Picture by Julia Chan

By Julia Chan

Tuesday, 09 Jan 2024 4:19 PM MYT

KOTA KINABALU, Jan 9 — Sabah is on its way to fully adopting green technology with an RM20 billion green steel project at the Sipitang Oil and Gas Industrial Park (SOGIP).

Hajiji said the state welcomes investments in products that harness renewable energy, improve waste management, and promote sustainable solutions.

Investing in green technology-based products not only aligns with global sustainability goals but also taps into a rapidly growing market for eco-friendly solutions,” he said.

Hajiji said this after witnessing the Heads of Agreement handing over ceremony from Sabah Energy Corporation Sdn Bhd (SEC) to Esteel Enterprise Sabah Sdn Bhd (Esteel Sabah) for the supply of 150 million standard cubic feet per day (mmscfd) of natural gas at Menara Kinabalu today.

Under the 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 20 years.

He said the project was part of the few key industry areas identified that not only promise substantial returns on investment, but also contribute to a more sustainable and prosperous future.

The green steel project is a three-phase project that opts for natural gas as a reducing agent instead of coke and coal, reducing carbon emissions by 70 per cent and making it low carbon, efficient, and environmentally friendly.

Esteel Enterprise Sabah Sdn Bhd, a subsidiary of Singapore’s Green Esteel Pte Ltd, had signed the land-lease agreement with the Sabah Oil and Gas Development Corporation Sdn Bhd (SOGDC) to set up the manufacturing plant at SOGIP in Sipitang in November 2022.

Phase One of the project, with an estimated cost of US$1.93 billion (RM8.97 billion), is expected to commence this year and be completed by 2026.

This project is anticipated to create approximately 2,795 job opportunities during its operational phase.

Representing SEC at the Heads of Agreement handover ceremony was its chief executive officer Datuk Adzmir Abd Rahman, while Esteel Sabah was represented by managing director Xu Yihang.

Also present were state Minister of Industrial Development and Entrepreneurship Datuk Phoong Jin Zhe, SEC chairman Datuk Annuar Ayub, state secretary Datuk Seri Safar Untong, and SOGDC Sdn Bhd chief executive officer Datuk Harun Ismail.



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