Latest news with #MerantiGreenSteel
Observer
6 hours ago
- Business
- Observer
Oman a strategic choice for green iron: Meranti
MUSCAT, JULY 29 Singapore-headquartered low-carbon steel manufacturer Meranti Green Steel (MGS) is firming up plans to establish a Hot Briquetted Iron (HBI) facility at the Special Economic Zone (SEZ) in Duqm on Oman's southeast coast. Phase 1 of the project targets a production capacity of 2.5 million tonnes per year of HBI, around 60 per cent of which will be shipped as feedstock for Meranti's proposed green steel plant planned at Rayong in Thailand. The latter project, slated for commissioning in 2028, will produce 2.5 million tonnes per year of hot-rolled steel earmarked for industrial consumers of green steel across Southeast Asia. The remaining 40 per cent of HBI from the Oman project is proposed to be supplied to Meranti's offtake partners distributed around the globe. In a post on Monday, July 29, 2025, Meranti described the Oman project as a 'strategic pillar of its integrated value chain.' It also outlined several reasons for selecting Oman—and Duqm in particular—as the site for its HBI production facility. Chief among these factors, it stated, is access to competitive energy: 'Oman offers reliable, cost-competitive natural gas and a rapidly developing green hydrogen ecosystem. This makes it an ideal location for producing direct reduced iron (DRI) at scale.' Equally significant, Meranti noted, are Duqm's infrastructure and export readiness. 'The Duqm Special Economic Zone provides industrial land, deep-water port access, and efficient permitting frameworks. This supports fast-track development and efficient global distribution.' Additionally, Oman's location enables efficient supply to Meranti's steel plant in Thailand, as well as to European offtakers seeking low-emission hot briquetted iron (HBI). Shipping HBI from Oman improves logistics and lowers emissions compared to traditional supply routes, the company stressed. Earlier this month, Meranti revealed that it had received tentative commitments from the Omani government for the supply of natural gas for the HBI project in Duqm. 'With gas secured and green hydrogen partnerships advancing, Oman is now fully positioned to become a critical enabler of our mission to decarbonize iron and steelmaking,' the company stated in its most recent post. 'We are working closely with Omani authorities and our raw material partner, who are committed to sustainable industrial growth. Their support is foundational to our success,' the company added. A relatively recent entrant into the steel sector in Southeast Asia, Meranti aims to leverage the latest advancements in steelmaking and digital technologies to maintain a competitive edge. A key pillar of this strategy involves establishing geographically decoupled Hot Briquetted Iron (HBI) supply chains, sourcing from highly competitive regions such as Oman and Western Australia. This approach enables Meranti to site HBI plants in locations with strong access to competitively priced natural gas and emerging green or blue hydrogen, while situating steel production facilities closer to end-user markets.
Zawya
09-07-2025
- Business
- Zawya
New green steel project planned in Oman
MUSCAT: Singapore-based Meranti Green Steel (MGS), a leading player in low-carbon steel production in the Asia-Pacific region, has announced further progress in its plans to invest in a major green steel project at the Special Economic Zone at Duqm (SEZAD) in southeastern Oman. Project capacity details and investment figures have not yet been disclosed. However, the company announced in a post on Tuesday, July 8, 2025, that it has received a provisional commitment for the supply of natural gas for the project from the Omani authorities. 'Meranti Green Steel has received the conditional gas allocation from IGC in Oman. With the project site confirmed and raw material supply in place, the foundation for our green iron production in Duqm is now established,' Meranti commented in the post, referencing the Integrated Gas Company (IGC)—the sole aggregator and supplier of natural gas in the Sultanate of Oman. The company further noted: 'Discussions with a range of potential green hydrogen partners are underway, and we are engaging closely with our financing partners, including KfW IPEX.' The latter refers to the import-export financing arm of KfW IPEX-Bank, a major German-based financial institution. The announcement underscores Duqm's rising international profile as a prime destination for investment in so-called 'hard-to-abate' sectors, particularly steel and aluminium manufacturing—industries traditionally associated with high carbon emissions. With several large-scale green hydrogen projects set to be implemented near Duqm, the anticipated availability of green hydrogen as a clean energy source is boosting the zone's attractiveness as a hub for low-carbon heavy industry. Jindal Duqm Steel (formerly Vulcan Green Steel)—part of India's Jindal Group—is already advancing construction work on the first phase of a 5 million tonnes per annum (mtpa) hydrogen-enabled green steel plant in Duqm, with an estimated investment of around $3 billion. In addition, two other international consortiums have announced plans to establish low-carbon iron projects in Duqm. Kobe Steel, in partnership with Mitsui & Co, has signed a memorandum of understanding (MoU) with Oman's Public Authority for Special Economic Zones and Free Zones (OPAZ) and the Port of Duqm Company to explore a low-carbon iron metallics facility in the SEZ. The project aims to produce 5 million tonnes annually of direct reduced iron (DRI), starting with natural gas and transitioning to hydrogen in the future. Similarly, Brazilian mining giant Vale has announced plans to invest in a Green Metallic Mega Hub in Duqm, intended to produce low-carbon DRI as feedstock for steel mills across the wider Middle East region. Meranti is concurrently developing an integrated green steel project in Rayong, Thailand, with a planned capacity of around 2.5 million tonnes per year. The facility, which integrates DRI, HBI (Hot Briquetted Iron), Electric Arc Furnace (EAF), and a Hot Strip Mill, will produce certified green Hot Rolled Coil (HRC) steel. Operations are scheduled to begin in late 2027 or early 2028. 'The (Oman) green iron project is central to our integrated green steel value chain. It will not only feed our low-emission steel plant in Thailand, but will also serve emerging HBI demand from European offtakers. With competitive access to gas and green hydrogen, we are confident that green iron from Oman can boost the competitiveness of European steelmakers and help secure jobs—not threaten them,' Meranti added in its post. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Observer
08-07-2025
- Business
- Observer
New green steel project planned in Oman
MUSCAT: Singapore-based Meranti Green Steel (MGS), a leading player in low-carbon steel production in the Asia-Pacific region, has announced further progress in its plans to invest in a major green steel project at the Special Economic Zone at Duqm (SEZAD) in southeastern Oman. Project capacity details and investment figures have not yet been disclosed. However, the company announced in a post on Tuesday, July 8, 2025, that it has received a provisional commitment for the supply of natural gas for the project from the Omani authorities. 'Meranti Green Steel has received the conditional gas allocation from IGC in Oman. With the project site confirmed and raw material supply in place, the foundation for our green iron production in Duqm is now established,' Meranti commented in the post, referencing the Integrated Gas Company (IGC)—the sole aggregator and supplier of natural gas in the Sultanate of Oman. The company further noted: 'Discussions with a range of potential green hydrogen partners are underway, and we are engaging closely with our financing partners, including KfW IPEX.' The latter refers to the import-export financing arm of KfW IPEX-Bank, a major German-based financial institution. The announcement underscores Duqm's rising international profile as a prime destination for investment in so-called 'hard-to-abate' sectors, particularly steel and aluminium manufacturing—industries traditionally associated with high carbon emissions. With several large-scale green hydrogen projects set to be implemented near Duqm, the anticipated availability of green hydrogen as a clean energy source is boosting the zone's attractiveness as a hub for low-carbon heavy industry. Jindal Duqm Steel (formerly Vulcan Green Steel)—part of India's Jindal Group—is already advancing construction work on the first phase of a 5 million tonnes per annum (mtpa) hydrogen-enabled green steel plant in Duqm, with an estimated investment of around $3 billion. In addition, two other international consortiums have announced plans to establish low-carbon iron projects in Duqm. Kobe Steel, in partnership with Mitsui & Co, has signed a memorandum of understanding (MoU) with Oman's Public Authority for Special Economic Zones and Free Zones (OPAZ) and the Port of Duqm Company to explore a low-carbon iron metallics facility in the SEZ. The project aims to produce 5 million tonnes annually of direct reduced iron (DRI), starting with natural gas and transitioning to hydrogen in the future. Similarly, Brazilian mining giant Vale has announced plans to invest in a Green Metallic Mega Hub in Duqm, intended to produce low-carbon DRI as feedstock for steel mills across the wider Middle East region. Meranti is concurrently developing an integrated green steel project in Rayong, Thailand, with a planned capacity of around 2.5 million tonnes per year. The facility, which integrates DRI, HBI (Hot Briquetted Iron), Electric Arc Furnace (EAF), and a Hot Strip Mill, will produce certified green Hot Rolled Coil (HRC) steel. Operations are scheduled to begin in late 2027 or early 2028. 'The (Oman) green iron project is central to our integrated green steel value chain. It will not only feed our low-emission steel plant in Thailand, but will also serve emerging HBI demand from European offtakers. With competitive access to gas and green hydrogen, we are confident that green iron from Oman can boost the competitiveness of European steelmakers and help secure jobs—not threaten them,' Meranti added in its post.
