
Vale signs agreement with OQAE to advance decarbonization of its Oman operations
Muscat – As part of its strategy to decarbonize its operations in Oman and transition its industrial energy use to renewable sources, Vale in Oman has signed a Head of Agreement (HOA) with OQ Alternative Energy (OQAE) during Oman Sustainability Week. The agreement establishes a framework for developing renewable energy solutions to power Vale's pelletizing plant in Sohar Port as well as support future energy needs for the upcoming Green Metallic Mega Hub in Duqm.
The agreement outlines the direction for future project development by establishing clear areas of cooperation related to energy supply, land coordination and long-term planning, all aimed at enabling the integration of renewable energy into Vale's operations.
Saleh Al Muslahi, Chief Executive of Mega Hubs-Middle East and North Africa, said: 'Achieving large-scale decarbonization demands more than ambitions, it requires strategic planning, strong partnerships, and reliable access to sustainable energy. Our agreement with OQAE embodies this approach. By aligning on demand aggregation, infrastructure readiness, and long-term supply models, we are creating the critical conditions to advance our transition in Sohar and unlock the potential of our future mega hub in Duqm.'
Najla Zuhair Al Jamali, Chief Executive of OQ Alternative Energy said, 'Our collaboration with Vale reflects OQAE's commitment to enabling the industrial sector's transition to clean energy. This agreement goes beyond decarbonizing a single site — it lays the foundation for a new model of sustainable industrial development in Oman, powered by renewables. Together, we are shaping a future where energy innovation drives national growth and global climate progress.'
Vale's ambition is to help decarbonize the mining industry and support the transition to net-zero steelmaking in the long term. Stemming from its belief that energy transition is a great growth engine, the company has made public commitments to reduce its environmental footprint by investing in cleaner technologies, improving operational efficiency, and adopting advanced emissions control systems. In Oman, this ambition is being translated into action through the company's commitment to transition its pelletizing plant in Sohar to 100% renewable electricity by 2030 as well as the establishment of a large-scale industrial complex in Duqm designed to produce high-quality agglomerated products that enable lower-carbon steel production for both local and global markets.
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