Carbon Recycling Study for Duqm Steel Project: Implications for Sustainable Investment in Oman
MUSCAT: PeroCycle, a UK-based industrial decarbonisation technology firm, has been engaged by Jindal Steel Oman to evaluate the feasibility of implementing its carbon recycling technology at the company’s low-carbon integrated Direct Reduced Iron (DRI) complex, currently under construction in the Special Economic Zone at Duqm (SEZAD).
This initiative aims to convert carbon emissions into a valuable industrial resource, potentially establishing a new global standard for low-emission steel production in Oman.
The first phase of Jindal Steel Duqm’s 5 million tonnes per annum (MTPA) low-carbon steel complex is progressing at SEZAD. This project includes two DRI plants, each with a capacity of 2.5 MTPA, utilizing Energiron technology. This gas-based process transforms iron ore pellets or lump ore into high-purity metallic iron, known as DRI or hot-briquetted iron (HBI).
As part of the feasibility study, PeroCycle intends to apply its proprietary technology to capture carbon dioxide (CO₂) emissions generated during steel production and convert them back into carbon monoxide (CO). This conversion allows the gas to be reused in the steelmaking process.
PeroCycle emphasizes that its technology can be integrated into existing blast furnace and DRI operations, unlike many decarbonisation solutions requiring entirely new steel plants or significant infrastructural changes. Utilizing a specialized thermochemical reactor and advanced perovskite-based materials, the system aims to establish a circular carbon loop, potentially reducing emissions from integrated steel mills by up to 90 percent.
"We are honoured to collaborate with Jindal Steel Oman, a leader in the global decarbonisation transition," stated Grant Budge, CEO of PeroCycle. "This feasibility assessment goes beyond a mere study; it has the potential to serve as a blueprint for the industry’s future. By merging PeroCycle’s CO₂ recycling capabilities with Jindal’s operational excellence, we aspire to prove that decarbonisation can coexist with industrial growth."
Harssha Shetty, CEO of Jindal Steel Oman, noted, "Exploring innovative technologies such as PeroCycle’s underscores our commitment to reducing our carbon footprint while enhancing our competitive edge in the global steel market. We look forward to assessing the technical and economic results of this study as we strive for sustainable steelmaking."
The commissioning of Phase 1 of the Duqm project is slated for early 2027.
Special Analysis by Omanet | Navigate Oman’s Market
The collaboration between PeroCycle and Jindal Steel Oman represents a significant opportunity for businesses in Oman to lead in sustainable industrial practices. The integration of decarbonization technology could establish a new standard for low-emission steel production, creating opportunities for investment in green technologies and attracting environmentally-conscious partners. Smart investors should consider the implications of this project for future demand in clean steel and related industries, positioning themselves in a market that is increasingly prioritizing sustainability.
