Why Meranti Sees Oman as a Strategic Hub for Green Iron: Implications for Investors and Entrepreneurs
MUSCAT, JULY 29 — Singapore-based low-carbon steel manufacturer Meranti Green Steel (MGS) is advancing plans to establish a Hot Briquetted Iron (HBI) facility in the Special Economic Zone (SEZ) in Duqm, located on Oman’s southeast coast.
The first phase of this project aims for an annual production capacity of 2.5 million tonnes of HBI. Of this total, approximately 60% is expected to be shipped as feedstock to Meranti’s proposed green steel plant in Rayong, Thailand, which is scheduled to commence operations in 2028 and will produce an additional 2.5 million tonnes of hot-rolled steel for industrial consumers across Southeast Asia. The remaining 40% of HBI will be supplied to Meranti’s global offtake partners.
In a statement on July 29, 2025, Meranti highlighted the Oman project as a “strategic pillar of its integrated value chain,” detailing various reasons for choosing Oman, particularly Duqm, for the HBI production facility.
A primary factor is Oman’s access to competitive energy resources. Meranti noted that the country offers reliable and cost-effective natural gas, alongside a rapidly developing green hydrogen ecosystem, making it an ideal location for mass production of Direct Reduced Iron (DRI).
Moreover, the company underscored Duqm’s infrastructure and export capabilities. “The Duqm Special Economic Zone provides industrial land, deep-water port access, and efficient permitting frameworks, facilitating rapid development and effective global distribution,” it stated.
Oman’s strategic location also allows for efficient supply to Meranti’s steel plant in Thailand and European offtakers seeking low-emission HBI. Shipping HBI from Oman not only enhances logistics but also reduces emissions compared to conventional supply routes.
Earlier this month, Meranti announced tentative commitments from the Omani government regarding natural gas supply for the HBI project in Duqm. “With gas secured and partnerships for green hydrogen advancing, Oman is now ideally positioned to play a crucial role in our mission to decarbonize iron and steelmaking,” the company noted.
Meranti emphasized its collaboration with Omani authorities and its raw material partners as vital to achieving sustainable industrial growth, stating, “Their support is foundational to our success.”
As a relatively new player in Southeast Asia’s steel sector, Meranti aims to leverage cutting-edge advancements in steelmaking and digital technologies to gain a competitive advantage. A key element of this strategy is establishing geographically decentralized HBI supply chains, sourcing from highly competitive regions like Oman and Western Australia. This approach allows Meranti to position HBI plants in areas with access to competitively priced natural gas and developing green or blue hydrogen, while locating steel production facilities closer to end-user markets.
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The establishment of Meranti Green Steel’s HBI facility in Duqm signifies a transformative opportunity for businesses in Oman, positioning the region as a key player in the green steel supply chain. This project not only enhances the competitive energy landscape but also opens avenues for investment in sustainable technologies that can attract global partnerships. Smart investors should focus on developing complementary industries to capitalize on this green transition, while businesses must be ready to adapt to emerging demands for low-emission materials.
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