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Masteel invests some RM60m in capex to become first ultra-low carbon emission integrated mill

Masteel invests some RM60m in capex to become first ultra-low carbon emission integrated mill

31 Jan 2023

Malaysia Steel Works (KL) Bhd (Masteel) has invested some RM60 million in various carbon reduction initiatives, earning itself the first ‘ultra-low carbon emission’ integrated steel mill in Malaysia with its inclusion in the FTSE4GOOD Bursa Malaysia Index last month.

In a statement on Tuesday (Jan 31) Masteel said it earned three out of four stars in the Environmental, Social and Governance (ESG) Ratings among public listed companies (PLCs) in FBM EMAS, placing it within the top 26%-50% of PLCs assessed by FTSE Russell.  

The integrated steel manufacturer said it had decreased its overall greenhouse gas emissions by a significant 47% from the baseline year of 2017 to 2021, primarily attributable to the reduction in Scope 1 emissions from the steel making process due to the transition to new steel making technologies starting in 2018.     

The new facilities also reduce energy inputs required from natural gas and oxygen.

Masteel had completed the construction of a curtain wall of its reheating furnace which resulted in further decrease in usage of natural gas.  

“This has already yielded positive results, with estimated reduction in natural gas usage of more than 9 Sm3/mt and a reduction of oxygen of more than 7 Nm3/mt2. These improvements also serve to reduce mill downtime,” it added.

Masteel managing director and chief executive officer Datuk Seri Tai Hean Leng said the group aims to reduce emissions by a further 10% by 2026, and 15% by 2031.  

“At the same time, we will also expand our emissions monitoring systems from Scopes 1 and 2 currently to include Scope 3, to implement incremental step ups in a systematic and sustainable manner.

“We have invested approximately RM60.66 million across various carbon-reduction initiatives in our operations towards our goal of reducing total CO2 (carbon dioxide) emissions by approximately 7,300 tonnes.”

Source: The Edge Markets