Oman-based steel producer Jindal Shadeed Group will invest $3 billion to establish a manufacturing facility to produce green steel in the Special Economic Zone at Duqm (SEZAD), the company said in a statement.
The company has already received the necessary approvals to secure the land for its green steel project.
“Our goal is to produce five million metric tonnes of green steel on an annual basis that will create over $800 million per annum in-country value addition,” said Harssha Shetty, CEO of Jindal Shadeed Group.
The facility will supply high-quality steel products to the automobile, wind energy and consumer durables sectors.
“There is a booming demand for green steel from ESG-conscious customers around the world, especially in Europe and Asia, who have already committed to a significant reduction in Scope 3 emissions by 2030,” Shetty added.
The green steel facility will utilise renewable energy sources in its manufacturing operations, the statement said, without giving further details.
Jindal Shadeed Group also signed a memorandum of understanding with the centralised utility provider, Marafiq, to provide the facility with the utilities necessary to operate the project, such as water services and seawater for cooling purposes and other Marafiq services.
Jindal Shadeed Group is a part of the $22 billion Jindal Group and accounts for 1.7 percent of the GDP of Oman, the statement noted.
The MENA region could potentially become an important supplier of carbon-neutral or green steel to the world thanks to the dominance of low-emission DRI-EAF technology in steel production, a September 2022 Zawya Projects report said, citing the findings of the Institute for Energy Economics and Financial Analysis.
(Writing by P Deol; Editing by Anoop Menon)