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Singapore S500QL1 steel based steel manufacturer Meranti plans to establish Southeast Asia's first green flat steel plant in Thailand, aiming to increase sustainable steel production in the region. The factory will use hydrogen instead of coal and adopt renewable energy driven electric arc furnace technology to reduce Thailand's dependence on imported steel and support decarbonization efforts in the electric vehicle industry.
The factory is expected to be put into operation in 2027, with an annual production capacity of 2 million tons, which can reduce 4 million tons of carbon emissions annually, equivalent to planting about 200 million trees every year. Meranti's S500QL1 steel green steel program focuses on producing steel without using fossil fuels and using green hydrogen in direct reduced iron (DRI) production, significantly reducing carbon emissions compared to traditional methods.
With over 200 years of industry experience, Meranti is establishing strategic partnerships, including partnerships with Green Steel in Western Australia, Global Power Synergy in Thailand, and Italian steel manufacturer Danieli, to support its green steel S500QL1 steel projects.
Thailand currently imports about 11 million tons of steel annually, accounting for approximately 60% of its total demand. The utilization rate of steel production capacity in the country has dropped below 30%, reaching the lowest level of 29.3% in seven years. Meranti's green steel plan aims to reduce dependence on imports and leverage the growing demand for low-carbon materials in the automotive manufacturing industry, especially as the Thai government promotes electric vehicles. It is expected that the demand for green steel will increase significantly, and by 2040, low-carbon steel is expected to account for over 25% of flat steel production.
