Meranti Green Steel eyes Indonesia for second-phase green steel expansion

By Pandu Setiabudi

Singapore-based Meranti Green Steel has included Indonesia in the second phase of its global expansion plans, targeting the country for a green steelmaking facility after launching green iron and steel projects in Oman and Thailand that are scheduled to begin operations by the end of 2029.

The company's Director of Sustainability, Jason Ang, outlined the plan in an interview with Petromindo.com on the sidelines of the Global Sustainable Development Congress.

Jason said Indonesia offers strong potential for low-carbon steel production, supported by abundant renewable energy resources, including solar, hydropower and wind.

The company plans to replicate the model adopted in the first phase of its expansion, which comprises a 2.5 million-ton-per-annum (mtpa) green iron plant in Oman and a 2.3 mtpa green steel plant in Thailand.

Under the model, the Thailand facility will source about 50% of its hot briquetted iron (HBI) feedstock from Oman, with the remainder supplied by recycled steel scrap.

Jason said separating ironmaking and steelmaking operations is a deliberate strategy designed to capitalize on each country's comparative advantages within the green steel value chain.

Meranti selected Oman for ironmaking because of its abundant natural gas and renewable energy resources, particularly solar and wind, which support green hydrogen production. By 2030, the company expects its reducing gas mix to comprise 88% natural gas and 12% green hydrogen, with the share of green hydrogen projected to rise to 85% by 2050. Oman's strategic location between Asia, Europe, the Middle East and North Africa also makes it an attractive hub for green iron production.

Thailand was chosen for steelmaking because of its well-established manufacturing and automotive industries, which provide a strong market for value-added steel products. The plant will be powered primarily by renewable electricity from solar and wind. To secure power supply, Meranti has established a subsidiary that is partnering with local companies to develop the required electricity infrastructure.

For the second phase of its expansion, Meranti plans to develop a steelmaking facility in Indonesia alongside a green iron plant in Australia.

By 2035, the company aims to produce 5 million-8 million metric tons of green iron and 7 million-8 million metric tons of green steel annually while reducing carbon intensity to below 600 kilograms of CO₂ per metric ton of steel, compared with about 2.3 metric tons of CO₂ from conventional steel production.

Editing by Reiner Simanjuntak