KOTA KINABALU: Sabah is well on its way to a green technology revolution with the RM20bil green steel project at the Sipitang Oil and Gas Industrial Park (Sogip), said Datuk Seri Hajiji Noor.
The Sabah Chief Minister said the state welcomed investments in products that harness renewable energy, improve waste management and promote sustainable solutions.
"Investing in green technology-based products not only aligns with global sustainability goals but also taps into a rapidly growing market for eco-friendly solutions," he said on Tuesday (Jan 9) after witnessing the heads of agreement handing-over ceremony from Sabah Energy Corporation Sdn Bhd (SEC) to Esteel Enterprise Sabah Sdn Bhd for the supply of 150 million standard cubic feet per day (mmscfd) of natural gas at Menara Kinabalu.
Under the agreement, SEC will supply 100mmscfd of natural gas to Esteel Sabah's manufacturing plant and an additional 50mmscfd for the plant's power generation over the next 20 years.
The Green Steel Project is a three-phase project which opted for natural gas as a reducing agent instead of coke and coal, reducing carbon emissions by 70% and making it low carbon, efficient, and environmentally friendly.
Esteel Enterprise Sabah Sdn Bhd, a subsidiary of Singapore's Green Esteel Pte Ltd, signed the land-lease agreement with the Sabah Oil and Gas Development Corporation Sdn Bhd (SOGDC) to set up the manufacturing plant in Sipitang in November 2022.
Phase one of the project, with an estimated cost of US$1.93bil (RM8.97bil), is expected to commence this year and be completed by 2026. It is anticipated to create approximately 2,795 jobs.
Representing SEC was its CEO, Datuk Adzmir Abd Rahman, while Esteel Sabah was represented by managing director Xu Yihang.
Also present were state Minister of Industrial Development and Entrepreneurship Datuk Phoong Jin Zhe, SEC chairman Datuk Annuar Ayub, Sabah state secretary Datuk Seri Safar Untong and SOGDC Sdn Bhd CEO Datuk Harun Ismail.
