Meranti Green Steel signs deal with German trader

Market: Hydrogen, Metals
18/03/24

Germany-based steel trader Interfer Edelstahl Handelsgesellschaft has signed a memorandum of understanding with Singapore-based Meranti Green Steel for the offtake of low-carbon hot-rolled coil for the European market.

Meranti is in the process of building an electric arc furnace-based steel plant in Thailand, which from 2028 will produce 2-3mn t/yr of HRC, fed by continuously cast slab.

Interfer and its joint venture partner Belmont & Knott, which trades flat steel into the EU and UK markets, are Meranti's first offtake partner for steel — the company has signed a number of MOU's with raw material suppliers, including Anglo American and Glencore.

Meranti is eyeing the EU as a potential market for its products given the bloc's carbon border adjustment mechanism, which will see importers pay a tax depending on the carbon intensity of their steel.

Meranti's HRC, which it plans will be fed with DRI and 10-20pc green hydrogen from 2028 and leverage on renewable energy in its steel making processes, will have a carbon intensity of less than 600kg/t, compared to the global average intensity of around 2t at present, the company said. It intends to ramp up its usage of green hydrogen as availability increases and cost falls, culminating in a minimal carbon footprint by 2040, when it targets using up to 90pc of green hydrogen.

Meranti has agreed to collaborate with Green Steel of WA on the production of DRI in Western Australia, which will feed its Thai mill.

By Colin Richardson

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