Posted on 07 May 2025
Malaysia Steel Works is working with Kelington Group and Universiti Tunku Abdul Rahman (Utar) to develop carbon capture technology — which traps and stores carbon dioxide (CO₂) emissions — to make steel production greener. The initiative also looks to find ways to trade the captured CO₂ in the future to generate a new source of income.
The collaboration, formalised through a memorandum of understanding, will study the best ways to capture and use or store CO₂ in steel production.
In a joint statement by the three organisations, they said in later stages, the study will look at improving Masteel’s energy efficiency and finding ways to make money from captured CO₂, such as selling verified carbon units (VCUs).
Masteel will provide the plant and operational input, Kelington’s subsidiary Ace Gases will contribute technical expertise, and Utar will support with academic research.
This initiative supports Masteel’s goal to reduce its carbon footprint and aligns with Malaysia’s climate targets of cutting greenhouse gas emissions by 45% by 2030 and reaching net zero by 2050.
Kelington has prior experience in carbon capture, having turned petrochemical waste gas into usable CO₂ in Terengganu. Its unit, Ace Gases, provides full carbon capture services — building, owning, and operating CO₂ plants — and handles transport to storage sites, allowing companies to focus on their main business while Ace manages emissions.
At noon break, Masteel's shares dropped by 0.5 sen or 2% to 24.5 sen, giving it a market value of RM169.7 million. Masteel's share price has fallen 23.44% this year.
Meanwhile, Kelington's shares rose 1 sen or 0.3% to RM3.38, with a market value of RM2.36 billion. Kelington's stock has declined 3.70% year-to-date.
Source:The Edge
