Malaysian steelmaker Esteel plans to reduce the carbon footprint of steel production by setting up environmentally friendly new steel plant in Sabah by investing MYR 19.6 billion (USD 4.39 billion). Under the green steel project, the plant will replace coke and coal with natural gas, and subsequently hydrogen in the future, as a reducing agent. The project covers the entire production chain from iron ore concentration, palletising and direct reduced iron to steelmaking, steel rolling and high-end steel processing. The use of natural gas will ensure that carbon emission from the production of steel drops by 70% but the facility will eventually turn to green hydrogen smelting, which leads to near zero carbon emission.Under the first phase are multiple facilities such as an iron concentration plant, pelletising plant, hot briquetted iron plant, as well as jetty and support facilities. This plant will eventually produce 2.5 million tonne per year of HBI. Work on this phase will begin in the third quarter of 2023 and is expected to be completed by the last quarter of 2025 at a cost of USD 1.29 billionSabah Oil & Gas Development Corporation has entered into a land lease agreement with Esteel Enterprise. Esteel will construct an integrated green steel plant on a 180 hectare site in the industrial park.Established in 2004, E Steel specializes in a wide range of high-quality steel products. The company focused on special steel whereas the majority of the steel materials are imported catered for Oil & Gas, Automotive, Medical, Machinery and Semiconductor industries. Since then E Steel has become one of the fastest-growing steel stockiest in Malaysia. The business has grown abroad to the Middle East and the rest of ASEAN countries.