Kobelco Millcon Steel
Kobelco Millcon Steel
Kobelco Millcon Steel Co., Ltd. (KMS), located in Rayong Province, is a joint venture between Kobe Steel, Ltd. (Japan) and Millcon Steel Public Company Limited (Thailand). The company manufactures high-quality specialty steel products, including steel bars, wire rods, and other processed products, serving both the Thai domestic market and export customers in automotive, construction, and machinery industries. With its advanced technology base and strong demand from regional supply chains, KMS is positioned as one of the most important specialty steel producers in Thailand’s Eastern Seaboard industrial cluster.
As a major industrial operator, KMS has a continuous and reliable electricity demand estimated at 3–6 MWe peak load, with additional energy requirements for steam and process heat. Like many steel companies worldwide, KMS faces increasing pressure from global buyers, CBAM regulations, and RE100 supply chains to decarbonize production and reduce reliance on fossil-based electricity and fuels.
Sector Role: Positioned within the steel value chain, KMS supplies key materials for automotive and export industries that are highly sensitive to low-carbon sourcing requirements.
Sustainability Drivers: Global customers are demanding low-carbon steel inputs, while financial institutions are scrutinizing Scope 1 and Scope 2 footprints of suppliers.
Energy Needs: KMS’s continuous electricity demand of 3–6 MWe makes it an ideal candidate for an on-site or nearby renewable energy solution, securing both cost stability and decarbonization benefits.
REpow proposes to develop a 6 MWe biomass power plant dedicated to supporting KMS’s green energy transition.
Feedstock: Agricultural residues and energy crops such as rice straw, sugarcane leaves, and Energy Wood Chips, sourced via contracted farming networks in the central and eastern regions of Thailand.
Outputs:
Clean Electricity (6 MWe): Stable supply to offset KMS’s fossil-based grid electricity.
Green Thermal Energy: Option to provide steam/heat integration for industrial processes.
Certified Carbon Credits: Generated under T-VER, Verra, or Gold Standard, creating an additional value stream.
Impact: Displacement of fossil-based electricity equivalent to 50,000–60,000 tCO₂e avoided annually, while reducing PM2.5 emissions from open burning of agricultural residues.
For investors, the KMS project represents a high-impact industrial decarbonization case:
Bankability: Industrial offtake anchored by a long-term PPA or energy supply agreement with KMS.
Alignment with Policy: Direct contribution to Thailand’s PDP, BCG model, and Net-Zero 2065 roadmap.
Climate Impact: Clear and measurable Scope 2 reductions for KMS, plus carbon credit generation.
Export Competitiveness: Ensures KMS’s products meet EU CBAM compliance and RE100 supply chain requirements for global automotive and construction customers.
Community Co-Benefits: Contracted farming provides stable income for local farmers, while the project creates rural jobs in feedstock collection, logistics, and O&M.
By partnering with REpow, Kobelco Millcon Steel can become a leader in green specialty steel within Thailand’s Eastern Seaboard, proving that industrial decarbonization is both feasible and bankable. The proposed 6 MWe biomass power plant will not only cover KMS’s electricity needs (3–6 MWe) but also strengthen its positioning as a CBAM-ready, RE100-aligned supplier, unlocking long-term competitiveness in export markets.
Looking ahead, Phase 2 expansion will add 5–10 MWe per phase, designed to supply direct PPA electricity to neighboring factories within the Rayong industrial zone. This creates a scalable green energy hub, enabling multiple industries in the region to decarbonize their operations while ensuring steady offtake and diversified revenues for investors.