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Omani steel producer to build $3bn green steel facility

The company aims to produce 5 million metric tons of green steel annually Jindal Shadeed Group
The company aims to produce 5 million metric tons of green steel annually

Oman-based steel producer Jindal Shadeed Group will invest $3 billion to establish a green steel manufacturing plant in the special economic zone at Duqm (Sezad), driven by renewable energy sources, the company said in a statement.

“We have already obtained the necessary approvals to secure the land for our green hydrogen-ready steel project,” said Harssha Shetty, CEO of Jindal Shadeed Group.

He stated that the company aims to produce five million metric tons of green steel annually, creating over $800 million per annum in-country value addition. 

The plant will supply high-quality steel products to automobile, wind energy and consumer durables sectors, the statement added.

“There is a booming demand for green steel from ESG-conscious customers around the world, especially in Europe and Asia, who have already committed significant reduction in scope 3 emissions by 2030,” Shetty said.

Jindal Shadeed Group also signed a memorandum of understanding with state-owned Marafiq, a centralised utility provider, to provide the plant with the utilities necessary to operate the project, such as water services and seawater for cooling purposes.  

Ahmed bin Hassan Al Dheeb, deputy chairman of the Public Authority for Special Economic Zones and Free Zones, said the green steel manufacturing facility will add value to the heavy industries cluster in SEZAD and play a vital role in the development of Duqm as a key industrial hub.

He added that the availability of solar energy and wind resources throughout the year will encourage more investments in green industries and renewable energy projects in Oman, in general, and Duqm, in particular. 

The $3 billion Sezad, one of the largest economic zones in the Middle East, is being built over an area estimated at approximately two sq km in the concession zone at the Port of Duqm.