Green Hydrogen – Meranti Green Steel Launches Green Iron Project in Oman
Meranti has announced the project in Oman’s Duqm Special Economic Zone to produce low-emission direct reduced iron and hot briquetted iron as part of its global decarbonisation strategy
Meranti Green Steel has announced a green iron project in Oman’s Duqm Special Economic Zone to produce low-emission direct reduced iron and hot briquetted iron as part of its global decarbonisation strategy.
The green iron facility will use a mix of natural gas and green hydrogen, supporting Oman’s ambitious Energy Transition Plan. Meranti plans to rely on green hydrogen for up to 85% of its production process over time, allowing CO₂ emissions per tonne of steel to fall below 200kg. Meranti is already discussing supply agreements for green hydrogen as it lays the groundwork for future expansion and sustainability.
Strategic Advantages of Oman
Meranti identifies Oman as an ideal location for this venture, citing its competitive energy resources, including cost-effective natural gas and a rapidly developing green hydrogen ecosystem. The Duqm Special Economic Zone offers robust infrastructure, industrial land, deep-water port access, and an efficient regulatory framework, all of which support rapid project development and facilitate international distribution.
Oman’s strategic geographical position further supports Meranti’s operations by enabling cost-effective shipping to the company’s steel plant in Thailand and to European offtakers seeking low-emission HBI, effectively reducing both logistics costs and transport-related emissions.
Project Timeline and Value Chain Impact
The group intends to make a Final Investment Decision (FID) for the Duqm project by mid-2026, with immediate construction to follow and commissioning scheduled for mid-2029. Meranti has already secured conditional gas allocation from Oman’s Integrated Gas Company (IGC) and is engaging with international financing partners, including KfW IPEX, to support the project’s realisation.
The Oman green iron project will play a pivotal role in Meranti’s integrated green steel value chain, helping to supply sustainable materials for its Thailand steel plant and meet the increasing demand for HBI in Europe. According to the company, this project is key to Meranti’s ambition to become a global leader in green steel.
Green Hydrogen – Meranti Green Steel Launches Green Iron Project in Oman, source
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