Malaysia-based Esteel Enterprise Sabah Sdn Bhd (Esteel Sabah), a subsidiary of Singapore-based Esteel Enterprise Pte Ltd. will invest RM 19.59 billion ($4.44 billion) to build a green steel plant at Sipitang Oil and Gas Industrial Park, according to media reports.
The plant will use natural gas as a reducing agent instead of coke and coal, leading to a carbon emission reduction of 70 percent.
The project will be implemented in three phases. The construction of the first phase of the project, in which the plant will produce 2.5 million mt of hot briquetted iron, is scheduled to start in the fourth quarter of 2023 and be completed by the fourth quarter of 2025.
The project is expected to generate 10,000-15,000 jobs during the construction period.