KUALA LUMPUR, 12 July 2024 – Universiti Teknologi Malaysia (UTM) has partnered with Mycron Steel Berhad (MSB) to spearhead green steel production efforts through the development of a comprehensive sustainability monitoring system. This initiative aims to decarbonize mid-stream steel industries and promote environmentally friendly steel production in Shah Alam.
The Memorandum of Understanding (MoU) was signed by UTM Vice-Chancellor Prof. Datuk Ir. Ts. Dr. Ahmad Fauzi Ismail and MSB Group Chief Executive Officer (CEO) Mr. Roshan M. Abdullah. The signing ceremony was witnessed by Prof. Madya Dr. Zarina Ab Muis, Director of UTM Process Systems Engineering Centre (PROSPECT), and Ms. Tracy Elena Goonting, Chief People & Culture Officer of MSB.
The iron and steel industry, known for its high energy consumption, contributes significantly to both global and local carbon emissions. This sector accounts for 8%-11% of global CO2 emissions and about 26% of Malaysia’s total Industrial Processes and Product Use (IPPU) emissions, with a 4% contribution to the overall Greenhouse Gas (GHG) emissions. The collaboration between MSB and UTM is a significant stride towards establishing a green steel GHG threshold standard that aligns with Malaysia’s net-zero ambitions. This initiative may lead to the creation of a Country Specific Emission Factor, enhancing national efforts to improve the default emission factor for the iron and steel industry.
Through matching grants, MSB and UTM will combine their resources to establish emission thresholds known as industry-specific iron and steel emission factors, particularly for mid-stream iron and steel production. These factors will serve as a key criterion for defining ‘green steel’ standards in Malaysia. The systematic data analytic GHG dashboard developed for self-monitoring and self-tracking can be adopted by other steel companies to meet net-zero targets, monitor compliance with green steel standards, and penetrate both domestic and international green steel markets. This tool will also help companies meet Bursa Malaysia’s GHG reporting requirements on Scope 3 emissions, reflecting the shared commitment of MSB and UTM to decarbonize the iron and steel industry.
Mr. Roshan M. Abdullah, Group CEO of MSB, emphasized, “We are honored to collaborate with UTM in addressing climate change and providing robust and practical solutions for GHG emission reduction.” He added, “As partners, we aim to drive significant progress and inspire other industry players to join the fight against climate change.”
Prof. Ir. Dr. Haslenda binti Hashim, the project leader, stated that the collaboration with MSB is a significant recognition for UTM. MSB’s willingness to collaborate in green steel initiatives can open greater opportunities for establishing country-specific carbon emission factors for iron and steel in Malaysia, further supporting Malaysia’s goal of becoming a net-zero country by 2050. This agreement will facilitate various collaborative activities between UTM and MSB, including research, capacity building, and corporate social responsibility initiatives focused on GHG emission reduction.
Together, we strive to shape a sustainable future through active participation in international and regional initiatives to combat climate change. This includes establishing green steel emission thresholds and advancing efforts to transition towards a net-zero industrial sector.
