Critical Challenge Ahead:
Transforming the Iron and Steel Industry
Today's main way of making iron and steel remains the blast furnace. The challenge of blast furnace based iron and steel making is that large amounts of CO2 are released into the atmosphere during the process:
For each ton of finished steel, more than 2,000 kg of CO2 are emitted.
With total global steel production expected to exceed 2bn tons of finished steel per year by 2030, blast furnace based iron and steel making is not sustainable.
Our Solution 1:
DRI/HBI and Hydrogen
Direct Reduced Iron (DRI) offers a cleaner alternative to traditional blast furnace steelmaking. In the DRI process, iron ore is deoxidized in a reactor using natural gas and/ or hydrogen under high pressure, significantly reducing CO₂ emissions.
At Meranti Green Steel, we apply advanced DRI technologies that allow flexible use of natural gas and hydrogen to minimize carbon intensity in line with market conditions.
Our high-grade iron ore is sourced from world-leading mining partners. At our Oman facility, we will produce 2.5 million tons/ year of Hot Briquetted Iron (HBI) in phase 1, allocating 60% to our green steel plant in Thailand and exporting 40% to our offtake partners.
Because full substitution with green hydrogen remains out of reach for the majority of steel markets, currently adding over USD 300 per ton of steel, we aim to start by using 15% hydrogen in the DRI process. We are committed to increasing the use of green hydrogen over time and ultimately run our DRI process with 85% of hydrogen and only 15% of natural gas.
Our Solution 2:
EAF & Renewables
Steel melting is one of the most energy-intensive processes worldwide. We are using Danieli’s cutting-edge Electric Arc Furnace (EAF) technologies to melt scrap steel and Hot Briquetted Iron (HBI), requiring significant amounts of electricity.
Electricity from renewable sources is CO₂ neutral. Therefore, as part of our green steel project, Meranti Green Steel is working closely with its sister company, Meranti Green Energy, partnering with leading renewable energy providers to secure a clean, reliable power supply for our Rayong plant.
MGE is building a diversified portfolio of solar, wind, and hydropower projects, with a goal of delivering up to 2,500 GWh of firm renewable energy annually by 2031.
Through direct Power Purchase Agreements, we will secure renewable energy to meet the full electricity demand of our EAF process. This approach ensures that our steel production is not only energy efficient but also CO₂ neutral in terms of scope 2 emissions.
Our Rayong plant is designed with a production capacity of 2.5 million tons per year of Hot Rolled Coil (HRC), supporting the growing demand for responsible steel in Thailand and the Southeast Asian region.
Our Process:
Green Steel Manufacturing
Steel melting is one of the most energy-intensive processes worldwide. We are using Danieli’s cutting-edge Electric Arc Furnace (EAF) technologies to melt scrap steel and Hot Briquetted Iron (HBI), requiring significant amounts of electricity.
Illustration of Meranti Green Steel plant in Rayong, Thailand – The first green flat steel plant in South East Asia
Located in the IRPC eco-industrial zone, our Rayong plant will be the cornerstone of Meranti Green Steel’s production in Thailand. Spanning 65 hectares, the facility is designed with a strong focus on environmental responsibility. It will feature an advanced waste treatment plant and air pollution control systems, ensuring emission levels that are even lower than the already strict standards set by the IRPC eco-industrial zone.
Planting 200 million Trees a year
A forest as large as the wider Bangkok area
Neutralizing all CO2 emitted annually
by all private vehicle traffic in Singapore
