By HIDAYATH HISHAM

MYCRON Steel Berhad has become the first company in Malaysia to adopt JFE Steel Corporation’s green steel product in a move to align themselves with Malaysia’s National Energy Transition Roadmap (NETR) and their goal of achieving carbon neutrality by 2050.

The move is formalised today through a Memorandum of Understanding (MoU) signed between Mycron Steel and JFE Steel at The Majestic Hotel in Kuala Lumpur.

The partnership aims to integrate JGreeX™, a green steel product developed by JFE Steel, into Mycron’s production processes.

“Mycron Steel is proud to be the first in Malaysia to adopt JFE’s green steel product, marking a strategic step in our journey towards sustainability. This aligns with Malaysia’s goal of carbon neutrality by 2050, as outlined in the National Energy Transition Roadmap (NETR),” said CEO of Mycron Steel Roshan M. Abdullah.

JGreeX™ employs a mass-balance approach, designed to track and reduce carbon dioxide (CO₂) emissions across the steel production chain.

The approach allows for the allocation of emissions reductions to specific products, helping ensure transparency in environmental reporting.

“JGreeX™ products supplied by JFE Steel are being developed using the mass-balance approach to measure reductions in carbon dioxide (CO₂) emissions,” Roshan explained.

The collaboration will support Mycron Steel’s efforts to reduce its carbon footprint and enhance the sustainability of its products.

The MoU also marks the beginning of Mycron’s plans to develop its own green steel products.

The company intends to use the same mass-balance method to meet the needs of industries seeking environmentally responsible materials.

“Looking ahead, Mycron Steel will be developing and launching our own patented green steel brands using the similar mass-balance approach,” he said, noting that the products would target sectors that prioritise sustainability.

This initiative supports national strategies such as the 12th Malaysia Plan and the New Industrial Master Plan (NIMP) 2030, which focus on sustainability and innovation.

In addition, Mycron has been working with Universiti Teknologi Malaysia (UTM) to establish a greenhouse gas (GHG) carbon monitoring system, a further step in its efforts to reduce emissions in the steel industry.

“Recently, we partnered with the Process Systems Engineering Centre at Universiti Teknologi Malaysia to establish a green steel greenhouse gas (GHG) emission threshold standard,” he added.

Despite these initiatives, challenges remain, particularly in securing access to affordable renewable energy, which is crucial for industries like steel to lower their carbon emissions.

Roshan noted that restrictions currently exist, particularly when it comes to accessing low-cost renewable energy.

He explained that while there are government initiatives, such as the Large Scale Solar (LSS) programme, these opportunities are often limited by quotas or quickly filled, making it difficult for energy-intensive industries like steel and cement to secure the renewable energy they need.

“Maybe access and quotas for renewable energy such as solar should be prioritised for these industries,” he added, adding to the importance of ensuring these sectors have the energy resources required to reduce their carbon footprints.

Roshan expressed hope that policies such as Third Party Access (TPA) would improve the situation, enabling sectors like steel to secure the renewable energy necessary for producing greener products and achieving sustainability goals.

The collaboration with JFE is seen as an important step towards advancing green steel production in Malaysia.

“Together, we are setting a new benchmark for green steel production in Malaysia,” he said.