Bali, 11 November 2022 – Decarbonization is a refreshing change for the iron and steel industry. Kelvin Fu, the Managing Partner of Gunung Capital, said that there was a core motivation for his company to decarbonize iron and steel. According to him, this industry has a heavy responsibility for carbon emissions.
“Fundamentally, this is more about how to encourage the business to be more impactful and sustainable,” said Kelvin at the Indonesia Net Zero Summit 2022: Decarbonization at All Cost in Bali, Friday (11/11/2022).
He further mentioned that deep decarbonization in this industry has many opportunities, as the steel industry contributes to the infrastructure and real estate sectors.
“From a raw material perspective, you can produce low-carbon steel with current technology. This is basically what we are doing because we have an electric furnace, which is like recycling scrap metal,” said Kelvin.
The scrap metal is obtained from the remains of a mining company or demolished real estate building.
“If you look from the value chain perspective along with the manufacturing processes, there is a lot we can do with steel. Many advanced technologies allow us to produce water from the house roof, then use the water in our supply chain, and can be expanded further,” he explained.
Furthermore, he continued to explain that they do decarbonization for a couple of reasons. The first is income opportunities in producing low-carbon steel for export, and the second is to control the cost. Hence, Kelvin concludes that decarbonization is a form of good business practice.
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