Jindal Steel to set up US$3bn green steel facility in Oman

Jindal Steel Group, the Omani-steel supplier, has announced plans to set up a US$3 billion mega green steel manufacturing facility in the Special Economic Zone at Duqm (SEZAD) in the Sultanate of Oman.

In a statement, the group said that the facility will have the capacity to produce five million metric tonnes of green steel annually. It is slated to be the largest facility of its kind within the zone, it highlighted, adding that the factory will also use renewable energy sources in its manufacturing operations.

The project will create over US$800 million per annum in country value addition. The plant will supply high quality steel products to automobile, wind energy and consumer durables sector amongst others. 

“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,” the statement said. 

The announcement was made at a ceremony that included the signing of a Memorandum of Understanding and a land allocation agreement. The MoU was signed by Ahmed bin Hassan Al Dheeb, Deputy Chairman of the Public Authority for Special Economic Zones and Free Zones, and Harssha Shetty, CEO of Jindal Shadeed Group. 

The land reservation agreement was signed by the Jindal Shadeed Group and Reggy Vermeulen, Chief Executive Officer of Port of Duqm.

Commenting on the series of agreements, Al Dheeb stated that a project of this calibre would be an added value to the heavy industries cluster in the SEZAD and would play a vital role in the development of Duqm as a key industrial hub.

He added: “The signing of the MoU and agreement is a testament to the importance of Sezad and further reinstates its position as a leading and attractive destination for large strategic projects that will benefit from renewable energy and green hydrogen. 

“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. Oman is making commendable progress towards using cleaner sources of energy to meet industrial requirements. 

“The efforts are in line with the priorities of Oman Vision 2040 to use alternative energy and sustainable natural resources. The project also serves the comprehensive national strategy which focuses on reducing emissions and achieving carbon neutrality.”

In Line with Oman’s Vision

In line with its development efforts, Jindal Shadeed Group also signed an MoU with the centralised utility provider, Marafiq, to provide the plant with the utilities necessary to operate the project such as water services, seawater for cooling purposes, and other Marafiq services. The agreement was signed by Talal Al Lawati, Vice President of Commercial Operations, Marafiq.

SEZAD is the largest economic zone in the Middle East, with an area of 2,000 square kilometres. This strategic project is being built over an area estimated at approximately two-square kilometres in the concession zone at the Port of Duqm.

Shetty said: “Jindal Shadeed Group is investing more than US$3 billion to develop this mega steel project in Duqm, and we have already obtained the necessary approvals to secure the land for our Green Hydrogen ready steel project.” 

Vermeulen added: “This is a successful pairing of Jindal Shadeed Group’s expertise in steel production and Port of Duqm’s logistical prowess. 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. 

“This huge project will not only attract foreign investment but also provide work opportunities for local talent. I would also extend my gratitude to the board of directors for their unending support, and for paving the path for us to attract projects of this scale and implications to Port of Duqm. We are confident that we will benefit from the continuous support of all parties who are committed to making this project a success.”