MUSCAT: Oman is one of two global destinations — the other being India — under consideration for the establishment of a new low-carbon green iron production project that will capitalise on green hydrogen expected to be locally produced starting in 2030.

Mulling this strategic investment is ACME Group, one of India’s foremost renewable energy and green ammonia developers. A wholly owned subsidiary of the Indian energy powerhouse is currently developing the first phase of a major green hydrogen and green ammonia project at the Special Economic Zone at Duqm (SEZAD) in the southeast of the Sultanate of Oman. Another potential venue for the green iron investment is Odisha, in eastern India, where ACME Group is planning a similar green hydrogen venture.

If Oman ultimately wins the location contest, this prospective investment will further reinforce the Sultanate of Oman’s positioning as a global green iron and steel production hub. The greenfield project under consideration by ACME Group is designed for a capacity of around 1.2 million tonnes per annum (Mtpa) of Direct Reduced Iron (DRI) — a low-carbon feedstock for steel mills.

Significantly, at least four major low-carbon iron and steel investments are currently in various stages of planning and development at Duqm SEZ. Leading the list is Jindal Duqm Steel (formerly Vulcan Green Steel), which is investing $3 billion in a 5 Mtpa green hydrogen-ready steel plant.

Brazilian mining conglomerate Vale is also planning an integrated industrial complex (Mega Hub) to produce Hot Briquetted Iron (HBI) and other low-carbon iron products using green hydrogen and clean energy sources.

Earlier, Kobe Steel and Mitsui & Co signed MoUs with Omani authorities to develop a low-CO₂ iron metallics project in Al Duqm. More recently, Thailand-headquartered Meranti Green Steel announced plans for a 2.5 Mtpa HBI plant in Phase 1 at Al Duqm.

Underpinning hopes for a potential fifth low-carbon iron production facility in Oman is a binding term-sheet agreement signed recently by ACME Group with Stavian Industrial Metal — part of a prominent Vietnam-based business group — covering the long-term sale and purchase of 0.8 Mtpa of green iron feedstock (HBI and DRI) on a take-or-pay / supply-or-pay basis for a period of 10 years.

ACME said the term sheet will be followed by an offtake agreement under which it will supply low-carbon feedstock from a greenfield, low-emission, renewable and hydrogen-ready plant currently under planning.

Commenting on the pact with Stavian Industrial Metal, Manoj Kumar Upadhyay, Chairman of ACME Group, said: “Our green HBI and DRI project underscores ACME’s unwavering commitment as a leader of clean technology solutions in India. We take pride in spearheading innovation within the clean energy sector, including green hydrogen and its derivatives. We are delighted to establish a long-term partnership with Stavian Industrial Metal to deliver sustainable solutions to hard-to-abate sectors such as steel manufacturing. Our greenfield facility will produce some of the lowest-carbon-emission green HBI and DRI products.

This collaboration marks a significant milestone in ACME’s integration of green steel into our portfolio as part of our strategic business expansion”.

David Nguyen Minh Tu, Chairman of Stavian Industrial Metal, stated: “The partnership between Stavian Industrial Metal and ACME is not merely a commercial agreement, but a testament to our shared responsibility in realising the Net Zero goals — by 2050 for Vietnam and 2070 for India. With a solid foundation, strong financial capacity and an ecosystem of over 20,000 customers across more than 100 countries, Stavian Industrial Metal is committed to working alongside global partners to build a more sustainable and greener steel industry — for the shared future of Vietnam, India and the world”.

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