German steel distributor Interfer Edelstahl Handelsgesellschaft has signed a memorandum of understanding (MoU) with Singapore's Meranti Green Steel to purchase low-carbon hot-rolled coils for the European market.

Meranti is constructing an electric arc furnace steel plant in Thailand, aiming to produce 2-3 million tons of hot-rolled coils annually from 2028, using cast slab as raw material.

Interfer and its joint venture partner Belmont & Knott are Meranti's first steel procurement partners. Meranti plans to utilize direct reduced iron and 10-20% green hydrogen from 2028, aiming for a carbon intensity below 600 kg/ton, compared to the global average of about 2 tons, and ultimately reducing its carbon footprint by 2040, with a target of using up to 90% green hydrogen.

Meranti has also agreed to collaborate with Western Australia's Green Steel to produce direct reduced iron, providing raw materials for its Thai steel plant.