Sahaviriya - SSI Group
Sahaviriya - SSI Group
The Sahaviriya Steel Industries (SSI) Group is one of Thailand’s largest steel producers, with operations spanning flat steel products, downstream processing, and trading affiliates. As a major energy consumer, SSI’s operations currently rely heavily on fossil-based electricity and heavy fuel oil (HFO), with reported consumption of 50–60 million liters of HFO per year. This makes SSI both a strategic industrial partner and a prime candidate for deep decarbonization through renewable energy integration.
REpoweri proposes a transformational clean energy program for SSI, combining large-scale biomass and biogas solutions to support the group’s journey toward low-carbon steel production and CBAM-compliant exports.
Feedstock: Sustainable energy wood plantations (e.g., Acacia mangium, Leucaena leucocephala, eucalyptus) cultivated through contracted farming and dedicated energy plantations.
Outputs: Grid-connected clean electricity and renewable steam/thermal energy for SSI’s steel manufacturing facilities.
Impact: Displaces fossil-based grid electricity and reduces upstream Scope 2 emissions. A plant of this scale will deliver 800,000–1,000,000 tCO₂e annual reductions.
Community Benefits: Creates stable long-term demand for contracted energy crop farming, generating sustainable income for rural communities while expanding green plantation areas.
Feedstock: High-yield Napier grass cultivated on contracted farmland, supplemented by livestock manure.
Outputs: Biogas for direct use in SSI’s industrial boilers, replacing 50–60 million liters of heavy fuel oil annually. Potential to upgrade into biomethane for higher-value industrial and transport applications.
Impact: Significant Scope 1 emission reduction by phasing out HFO in steel production. Estimated savings of 150,000–200,000 tCO₂e annually.
Community Benefits: Strengthens local agricultural value chains and reduces methane emissions from untreated manure.
The SSI project represents a landmark industrial decarbonization case in Southeast Asia:
Scale: A combined 100–125 MWe biomass plant and biogas facility make this one of Thailand’s largest industrial renewable energy integrations.
Sector Impact: Supports the green steel transition, helping SSI align with EU CBAM requirements and maintain access to export markets.
Policy Alignment: Directly supports Thailand’s Net-Zero 2065 commitment, BCG economic model, and COP26 pledges.
Carbon Finance: Eligible to generate over 1 million tCO₂e in carbon credits annually, providing additional returns and investor upside.
ESG Co-Benefits: Beyond emission reductions, the projects deliver air quality improvements, farmer income uplift, rural employment, and community resilience.
This initiative transforms SSI from a traditional steel producer into a regional leader in green steel, backed by renewable energy and sustainable feedstock supply chains. For DFIs and Climate VCs, the project offers:
Sectoral Transformation: Steel is one of the hardest-to-abate sectors. Supporting SSI’s decarbonization has system-wide implications for Thailand’s industrial competitiveness.
Integrated Value Chain Impact: The project’s benefits extend beyond upstream steelmaking into midstream and downstream units, ensuring compliance across the full value chain.
Investor Opportunity: With a potential reduction of over 1 million tCO₂e annually, the project creates bankable infrastructure and new carbon credit revenues while delivering Green Steel at scale.
Market Premium: By becoming one of Southeast Asia’s first large-scale Green Steel producers, SSI Group can capture export premiums and secure long-term competitiveness in CBAM-regulated markets.
Beyond its upstream steelmaking operations, the SSI Group maintains a diverse network of midstream and downstream businesses that are critical to long-term competitiveness in the global steel market. These subsidiaries play an essential role in ensuring that SSI can remain resilient under CBAM regulations, while positioning itself as a credible producer of green steel for export markets.
SSI Group subsidiaries operate in cold-rolled steel (CR), galvanized steel (GI/GA), and color-coated steel.
These products are high-value inputs for automotive, construction, and appliance industries.
By powering production with renewable electricity and replacing heavy fuel oil (HFO) in boilers with biogas, SSI’s midstream operations can shift to low-carbon coated steels, directly meeting EU and US CBAM compliance requirements and gaining access to premium markets.
SSI Service Centers, located across Thailand and abroad, provide cutting, processing, and distribution services to both major manufacturers and SMEs.
With access to certified Green Steel products, service centers can differentiate themselves in the market, offering customers supply-chain resilience and RE100-aligned materials.
This creates brand differentiation and allows SSI to capture green premiums in export-driven sectors.
SSI’s trading arms maintain distribution networks in Asia, Europe, and the United States.
If upstream and midstream operations transition to renewable-powered production, the entire SSI Group gains a significant advantage in marketing low-carbon, CBAM-ready steel products worldwide.
This trading reach makes SSI an ideal platform for scaling Thailand’s Green Steel exports into demanding international markets.
Based on publicly available information, the SSI “family” includes:
Thai Cold Rolled Steel Sheet Public Co., Ltd. (TCR / TCRSS) — a cold-rolling subsidiary producing cold-rolled steel coil from hot-rolled feedstock.
Thai Coated Steel Sheet Co., Ltd. (TCS) — focusing on galvanizing or coating (electro-galvanized steel sheet) downstream of cold-rolled steel.
West Coast Engineering Co., Ltd. (WCE) — engineering, maintenance, equipment, parts supply, and project services for plant and mechanical systems.