Oman Cement’s Shift to Waste as Fuel: What This Means for Sustainable Business Practices and Costs in Oman
MUSCAT, March 9 — Oman Cement Company has announced a new initiative to utilize industrial waste as a supplementary energy source, aiming to reduce its reliance on fossil fuels, particularly natural gas.
At the company’s Misfah complex in Muscat Governorate, a shredding machine has been installed to process industrial waste for fuel use. Additionally, a contract has been awarded for the supply and installation of a plant to feed industrial waste into Kiln-1, enhancing the company’s energy efficiency.
This project is a key component of Oman Cement’s strategy to boost operational efficiency, increase production capacity, and support its decarbonisation goals in line with Oman Vision 2040, stated Xu Gang, Chairman of the Board of Directors, in the company’s 2025 annual report.
Earlier this year, the company revealed plans to invest in a waste-to-energy plant that will convert Refuse Derived Fuel (RDF), a processed form of municipal solid waste, into an alternative energy source. RDF typically includes non-recyclable plastics, paper, wood chips, sawdust, and other combustible materials processed to meet specific standards.
In February 2020, Oman Cement entered into an agreement with Oman Environmental Services Holding Company (be’ah) to receive processed scrap tyres as fuel for its cement kilns. This deal involves the supply of approximately 30,000 tonnes per year of Tyre-Derived Fuel (TDF).
“The company is exploring the use of municipal solid waste-derived products to reduce natural gas consumption, supporting decarbonisation efforts in alignment with Oman Vision 2040,” Chairman Xu Gang added.
Operationally, Oman Cement recorded modest growth in 2025. Clinker production increased by 3.39% to 2.97 million tonnes, while cement output rose by 2.19% to 3.38 million tonnes. Cement sales volume grew 2.9% to 3.40 million tonnes, generating revenues of RO 68.94 million, up slightly from RO 67.65 million the previous year. Meanwhile, clinker sales more than doubled to 57,554 tonnes, reflecting the company’s product diversification efforts.
However, profitability declined despite higher production and sales. Profit before tax decreased to RO 9.57 million from RO 13.07 million, and profit after tax fell to RO 8.30 million from RO 11.12 million. The decline was mainly due to increased costs for natural gas, electricity, lease rentals, and kaolin consumption.
Oman Cement is majority-owned by Hong Kong-based Huaxin International Holdings Limited through its wholly owned subsidiary, Mauritius-based Abra Holdings Limited.
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Oman Cement’s shift towards utilizing industrial and municipal solid waste as alternative fuels signals a strategic move to reduce fossil fuel dependency and align with Oman Vision 2040’s sustainability goals, creating opportunities for waste management and green energy sectors. However, rising operational costs despite increased production highlight the need for investors and entrepreneurs to focus on innovation and efficiency improvements to sustain profitability in an evolving industrial landscape. Smart investors should consider the growing demand for circular economy solutions as Oman’s industrial players intensify their decarbonization efforts.
