The new operation aims to
produce five million tons of green steel a year, creating over $800 million per
annum in value addition. (Supplied)
RIYADH: Omani steel giant Jindal Shadeed Group
intends to set up a $3-billion factory
to produce “green steel” using renewable energy in the
Special Economic Zone at the Port of Duqm on the country’s southeastern coast,
SEZAD.
The new operation aims to produce five million tons of green
steel a year, creating over $800 million per annum in value addition, it said
in a press release.
The company, a part of the $22-billion Jindal
Group, will supply high-quality steel products to sectors such as
automotive, wind energy and consumer durables. It sees a booming demand
for green steel from environmental, social, and corporate
governance-conscious customers around the world, especially in Europe
and Asia, who have already committed to a significant reduction in Scope 3
emissions by 2030, according to Group CEO Harssha Shetty.
An MoU was signed by Shetty and Ahmed bin Hassan Al Dheeb, deputy
chairman of the Public Authority for Special Economic Zones and Free Zones,
while a land reservation agreement for the site for the project was also signed
between the Group and Reggy Vermeulen, the port’s CEO.
The Group, which claims to be Oman’s largest steel
producer, also signed an MoU with the centralized utility provider,
Marafiq, to provide the plant with the utilities necessary to operate the
project such as water services and seawater for cooling purposes.
Commenting on the agreements, Al Dheeb said: “The signing of the
MoU and agreement is a testament to the importance of SEZAD
and emphasizes its position as a leading and attractive destination
for large strategic projects that will benefit from renewable energy and green
hydrogen.”
He said the availability of solar energy and wind resources
throughout the year will encourage more investments in green industries and
renewable energy projects in Duqm.
Oman is making efforts toward using cleaner sources of energy to
meet industrial requirements. Al Dheeb said 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 to reduce emissions and achieve carbon neutrality,” he
added.
Shetty revealed that Jindal Shadeed Group has already
obtained the necessary approvals to secure the land for our green
hydrogen-ready steel project.
Reggy Vermeulen added: “This green steel project aligns very
well with the port’s economic diversification and reduction in reliance on the
oil and gas sector. It will not only attract foreign investment, but also provide
work opportunities for local talent.”