MUSCAT: Jindal Shadeed Iron & Steel (JSIS), which owns and operates the largest integrated steel complex at Sohar Port, has unveiled plans to invest over $4 billion in a portfolio of projects aimed at positioning the company, as well as the Sultanate of Oman, among the leading producers of green steel globally.
It includes initiatives to establish an integrated steel plant in the Special Economic Zone (SEZ) in Duqm complete with renewable and hydrogen powered components to enable the production of green steel in the largest such venture in the GCC.
“JSIS’s plan is to collaborate with the Government of Oman and create a renewable power-driven hydrogen ecosystem in Duqm – initiatives to lead FDI investments from the various participants in the Hydrogen Economy value chain,” said a company official in a recent presentation to a gathering of investment and energy sector executives in Muscat.
At Duqm SEZ, Jindal Shadeed intends to set up a 4.5 million tonnes per annum (MTPA) capacity integrated steel mill for the production of a range of green steel products at a capex of around $2.4 billion. Anchored by a 6 MTPA pelletising plant, the mega project will be integrated with a 2.25 MTPA Direct Reduction Iron (DRI) plant and 2.5 MTPA Electric Arc Furnace steel melt shop in the first phase (with similar expansions envisioned in the next phase). Also envisaged are mills for compact steel production (CSP), large diameter pipes (LDP) and wire rods. Powered predominantly by green energy, the entire project will be connected to a 600 MW solar plant.
A significant part of Jindal Shadeed’s new investment outlay is also earmarked towards the expansion and decarbonization of the company’s assets in Sohar Port. It includes plans for a new 6 MTPA pelletising plant, the foundation stone for which was laid last month. Other additions to the complex include the expansion of the DRI plant’s capacity to 2.0 MTPA, up from 1.8 MTPA presently, while a new submerged arc furnace will be installed as well. Also envisaged is a 0.5 MTPA wire rod mill and a 500 MW capacity solar plant.
Further, to help reduce its dependence on fossil fuels for its energy needs, Jindal Shadeed recently entered into a partnership with German clean energy specialist Hydrogen Rise to enable the use of hydrogen in the company’s energy mix. As part of the agreement, Hydrogen Rise will assess the development of a first-ever green hydrogen plant in Suhar. The company’s overall goal is to emerge as a leader in the production of low-carbon-based steel for various industries and applications.
Jindal Shadeed is already a significant contributor to the Omani economy, accounting for 1.7 per cent of the GDP. Set up with an investment of $1.2 billion, it has also generated in-country value (ICV) amounting to $3.6 billion over the 2014 – 2019 timeframe. As the largest player in the domestic steel sector, the company has transformed Oman from being an importer of steel into a net exporter.
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