Amnah Energy’s Green Hydrogen Supply: A Game-Changer for Oman’s Steel Industry and Investment Opportunities
MUSCAT: In a major step towards advancing Oman’s green industrial ambitions, the Amnah Energy consortium has signed a Memorandum of Understanding (MoU) with Meranti Green Steel to supply clean energy for a low-carbon iron project at Al Duqm. This partnership supports Oman’s pledge to dedicate a portion of its green hydrogen production to high-impact industrial uses, notably green steel manufacturing.
The agreement significantly strengthens Oman’s initiative to localize industrial sectors benefiting from the anticipated large-scale availability of green hydrogen in Al Duqm by approximately 2030.
The Amnah consortium—which includes Copenhagen Infrastructure Partners (CIP), Blue Power Partners, and Al Khadra (Hind Bahwan Group)—has secured a 320 km² land block (Z1-01) in Al Duqm to develop a green hydrogen facility producing 200,000 tonnes annually. This project will be powered by about 4.5 GW of renewable energy and was awarded during Oman’s inaugural public auction for integrated hydrogen projects.
Meranti Green Steel, based in Singapore, plans to establish a Hot Briquetted Iron (HBI) plant at Al Duqm with a production capacity of 2.5 million tonnes per year. Through the MoU, both parties will collaborate on creating a green hydrogen supply and offtake framework.
In its announcement, Meranti emphasized the shared commitment to “designing the most reliable and competitive solution” and a “long-term partnership vision focused on decarbonizing the steel industry.” Andrew Fang, Meranti’s Vice President of Projects & Sustainability, highlighted that the collaboration is a pivotal move to leverage green hydrogen in producing low-carbon HBI. He noted that enhancing both ends of the value chain is essential to scaling the project and advancing a phased decarbonization strategy that supports Oman’s expanding green hydrogen ecosystem.
Emily Sykes, Director of the CIP Energy Transition Fund, underscored the project’s alignment with Oman’s ambitions for large-scale green hydrogen production. She described the partnership as a critical step in establishing an integrated value chain that links Oman’s ample renewable energy resources to industrial decarbonization. Sykes added that this initiative aims to accelerate the global energy transition, generate substantial economic opportunities and employment, and position Oman as a hub for sustainable industry over the coming decades.
Meranti explained that the planned offtake framework will comply with Oman’s green hydrogen infrastructure regulations, overseen by sector coordinator Hydrom, OQ Gas Networks (OQGN), and other national utilities.
By coupling green hydrogen production with committed, long-term industrial demand onshore, the Amnah-Meranti partnership addresses the challenge of aligning emerging hydrogen supply with industrial uptake. This collaboration also supports Meranti’s objective of delivering cost-competitive, low-carbon HBI for international markets.
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The collaboration between Amnah Energy and Meranti Green Steel positions Oman as a pivotal player in the emerging green hydrogen economy, leveraging its vast renewable resources to drive industrial decarbonization. For businesses, this signals new opportunities in sustainable manufacturing and clean energy infrastructure, while smart investors should consider the potential for growth in green steel and hydrogen sectors as Oman develops an integrated value chain. However, companies must also be mindful of the long-term commitment required to align supply and demand in this rapidly evolving market.
