Malaysia-based steel producer MAEGMA Minerals has signed a partnership agreement with UK-based plantmaker Primetals Technologies to build a cutting-edge MIDREX Flex steel production facility in Malaysia. The plant with an annual capacity of 2 million mt of hot briquetted iron (HBI) is expected to begin operations in 2029.
The MIDREX Flex technology developed by Primetals offers significant environmental benefits, capable of operating on varying ratios of natural gas and hydrogen, including up to 100 percent hydrogen. Initially running on a natural gas-hydrogen mix, the plant will reduce carbon emissions by more than 50 percent compared to traditional blast furnace methods.
"The industry is increasingly transitioning to hydrogen, but energy prices remain a challenge," said Andreas Viehboeck, executive vice president at Primetals Technologies, adding, "The flexibility of the MIDREX Flex plant will allow MAEGMA to scale up hydrogen usage based on market conditions while significantly reducing carbon emissions".
The facility will be powered by local natural gas and green hydrogen produced from renewable energy sources, including a planned solar park. Raw materials will be supplied by a global mining company with nearby operations, reducing transportation costs.