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$3bn INVESTMENTS PLANNED

Vulcan breaks ground on key Oman green hydrogen steel plant

MUSCAT, November 28, 2023

Vulcan Green Steel, a subsidiary of Jindal Shadid Steel Group, has broken ground on its integrated green hydrogen steel factory at the Special Economic Zone at Duqm (Sezad) in Oman. The project is set for completion by 2026.
 
With an investment of up to $3 billion, the project is a significant one for both the Jindal Shadid Steel Group and the sultanate. It is in line with Oman’s vision for Net Zero by 2050, thus positioning the nation as a trailblazer in sustainable steel production.
 
The company plans to have two production lines of 2.5 million metric tonnes per year each, comprising direct reduction iron (DRI), an electric arc furnace (EAF) and a hot strip mill. 
 
The project will initially be based on natural gas for energy and will later shift to green hydrogen and produce high value-added steel catering to automobile, wind turbine and domestic consumer durable goods manufacturing across Europe and Japan. 
 
It is set for completion by 2026 and the production will begin the very next year. Once operational, it will boast a total capacity of about 5 million metric tonnes per annum.
 
The ground breaking ceremony was held yesterday (November 27) in the presence of Dr Ali Masoud Al Sunaidi, the Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ), Naveen Jindal, Chairman of Jindal Group and other senior officials.
 
Lauding the project, Dr Al Sunaidi said: "This project aims to produce 5 million tonnes of green steel with an investment of up to $3 billions. The significance of this project is paramount as it will produce steel for the automotive sector, electrical tools sector, and also the wind turbine sector."
 
The authority, he stated, is currently in discussions with buyers in European and Asian markets.
 
In his keynote address, Venkatesh Jindal, Vice Chairman of the Board of Directors of Vulcan Green Steel, said: "We stands hand in hand with Oman as we collectively strive for a cleaner and greener industrial economy. Our green pledge, made just weeks ago, is not a mere proclamation. It is a substantial and real investment of more than $3 billion in a state-of-the-art green hydrogen ready steel plant in Duqm, the first of its kind and the largest globally." 
 
"The project is expected to achieve significant savings of 12 million tonnes annually in carbon dioxide, said Jindal, noting that the plant will provide flexibility to move from 100 percent reliance on natural gas to 100 percent endorsement of green hydrogen," he added.
 
In 2020, Jindal Steel and Power Limited (JSPL), in order to deleverage its balance sheet, had sold the assets of its Oman operation, Jindal Shaheed Iron and Steel Company Limited, to Vulcan Steel, at an estimated value of $1 billion.-TradeArabia News Service

 




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