Jindal Shadeed to build USD-3bn green steel plant in Oman

Oman's largest steel manufacturer Jindal Shadeed Group is planning to build a renewable energy-powered plant on the southeastern coast of the sultanate to produce some 5 million tonnes of green steel annually.

At a ceremony on Sunday, the group signed a memorandum of understanding (MoU) on the project which will require USD 3 billion (EUR 2.84bn) in investments.

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The plant will use renewable energy for its operations and will be located on an area of 2 sq km (0,772 sq mi) in the Special Economic Zone in the port city of Duqm.

A land allocation agreement for the project has also been inked and the necessary approvals have been already obtained to secure the land for the green hydrogen ready steel project, Jindal Shadeed's chief executive Harssha Shetty said.

The green steel produced at the plant in Duqm will be supplied to the automobile, wind energy and consumer durables sector amongst others.

"This green steel project aligns very well with Port of Duqm’s vision to be a green port operating on sustainable and renewable energy sources in line with the Oman vision 2040 to support economic diversification and reduce reliance on the oil and gas sector," said Port of Duqm's chief executive Reggy Vermeulen.

With ambitions to become the largest port in the Middle East, Duqm plays a key role in Oman's National Hydrogen Strategy which was unveiled in October as one of three main areas along with Dhofar and Al-Djazir designated to host green hydrogen plants. The sultanate aims to produce between 1 million and 1.25 million tonnes of green hydrogen by 2030 which will be used to meet local demand and for export purposes.

(USD 1 = EUR 0.949)