Jindal Steel Duqm Expands Operations with Second Plant: Implications for Investment Opportunities in Oman
المسكات عنب طيب الشذا: Jindal Steel Duqm is advancing its construction of the first green steel complex in the Sultanate of Oman, located in the Duqm Special Economic Zone. The company is acquiring a second hydrogen-ready direct reduction (DRI) plant to enhance its production of hot-briquetted iron (HBI). This addition aims to elevate the complex’s output to a target of 5 million tonnes per annum (mtpa) at full capacity.
The second DRI plant, akin to the first ordered in late 2023, will be supplied by a partnership between leading Italian steel engineering firms Tenova and Danieli. Each plant will utilize Energiron technology and will have a capacity of 2.5 mtpa of HBI. Upon completion of both phases of the steel mill complex by approximately 2030, the total production capacity will reach 5 mtpa.
In a statement confirming the second DRI plant order, Danieli announced, “The direct reduction plant will be installed in Al Duqm, in the Al Wusta Governorate of Oman, where the first Energiron DRI plant is under construction and scheduled to commence operations in 2026.”
This new DRI plant will incorporate Zero-Reformer Energiron Direct Reduction technology, co-developed by Tenova and Danieli. It is designed to produce 2.5 mtpa of direct reduced iron (DRI) with an impressive average metallization rate of 94%. The hot DRI produced will be briquetted to create HBI, making it suitable for storage or export.
Jindal Steel Duqm, a subsidiary of the Indian power and steel conglomerate Jindal Group, broke ground on its $3 billion project in November 2023. The plant’s Energiron DRI technology, which is hybrid in design, allows for operations using both natural gas and up to 80% hydrogen, without requiring any modifications to the plant.
“This project will utilize Oman’s natural gas and renewable energy to produce hydrogen. The technology’s built-in carbon capture facilities will facilitate the reuse of captured carbon, seamlessly integrating into Jindal Steel Duqm’s broader green steel complex,” stated Danieli.
Importantly, Al Duqm is poised to become a hub for international investments in green steel, aiming to take advantage of the region’s low-carbon hydrogen availability starting in 2030.
Kobe Steel, in collaboration with Mitsui & Co, has signed a memorandum of understanding (MoU) with Omani authorities to explore developing a low-carbon iron metallics facility in the SEZ, which aims to produce 5 mtpa of DRI. This project will initially use natural gas, transitioning to hydrogen in the future.
Moreover, Brazilian mining giant Vale has announced plans to invest in a Green Metallic Mega Hub in Al Duqm, focusing on producing low-carbon DRI for steel mills throughout the Middle East. Additionally, Singapore-based Meranti Green Steel (MGS) has outlined its plans for a 2.5 mtpa HBI plant as part of its initial project phase in Al Duqm.
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إنشاء first-ever green steel complex in Duqm represents a significant shift toward sustainable industrial practices in Oman, offering businesses access to low-carbon technologies that can enhance competitiveness. This opens up opportunities for investment in green technologies and infrastructure, while also posing risks associated with the volatility of energy markets and the need for skilled labor to accommodate these advanced operations. Smart investors and entrepreneurs should consider diversifying their portfolios by engaging with green initiatives and exploring collaborations in this thriving sector.
