Arab
News, Monday, Dec 05, 2022 | Jamadi Al Awwal 11, 1444
Oman’s Jindal Shadeed to invest $3bn to produce green steel at Port of Duqm
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.”