Oman’s New Green Iron Project: What Mid-2026 Final Investment Decision Means for Investors and Entrepreneurs
MUSCAT: Singapore-based Meranti Green Steel (MGS) is advancing its plans to establish a major green iron project in Oman, targeting a Final Investment Decision (FID) by mid-2026. This milestone will enable the full-scale development of the facility, located within the Special Economic Zone at Duqm (SEZAD).
The project’s first phase features a 2.5 million tonnes per annum (mtpa) Hot Briquetted Iron (HBI) plant. Initially, the plant will operate on a carefully balanced mix of natural gas and green hydrogen, with plans to progressively increase the hydrogen proportion to produce lower-carbon green steel. Meranti confirmed sustained progress on the Duqm venture through several updates this week.
“The company aims to make a Final Investment Decision by mid-2026, with construction commencing immediately thereafter,” Meranti stated. Commissioning of the facility is scheduled for mid-2029.
Meranti emphasized alignment with Oman’s Energy Transition Plan, focusing on the natural gas and green hydrogen blend. The company plans to use up to 85% green hydrogen over time, which will cut CO₂ emissions per ton of steel to below 200kg. Negotiations with potential green hydrogen suppliers are already underway.
In line with its strategy to separate iron production from steelmaking, a portion of the low-carbon HBI produced in Duqm will be shipped to a planned green steel mill in Rayong, Thailand. This 2.5 mtpa steel plant is poised to become Southeast Asia’s first green flat steel facility. The remainder of the HBI output is earmarked for European buyers.
Sebastian Langendorf, CEO of Meranti Green Steel, highlighted that current market conditions support decoupling iron production from steelmaking. “Cost-competitive HBI production can be pursued where natural gas and hydrogen are favorable, while electric arc furnace (EAF)-based steelmaking can be positioned closer to end markets,” he explained in an interview with German steel publication MBI Stahl Monitor.
Meranti underlined the strategic importance of its Duqm investment, describing it as central to its integrated green steel value chain. The project will supply sustainable materials to its Thailand steel plant and meet growing demand for HBI in Europe. “The Oman project will help Meranti achieve its ambition of becoming a leader in green steel.”
Oman is considered an ideal location owing to its competitive energy resources, notably cost-effective natural gas and a rapidly developing green hydrogen ecosystem. The SEZAD offers robust infrastructure, including industrial land, a deep-water port, and streamlined regulatory frameworks that support fast-track development and global distribution.
Additionally, Oman’s position facilitates economical shipping to Meranti’s Thailand steel plant and European offtakers seeking low-emission HBI, helping reduce both logistics costs and emissions.
Commissioning of the Duqm project is projected for mid-2029.
Special Analysis by Omanet | Navigate Oman’s Market
Meranti Green Steel’s green iron project in Duqm signals Oman’s emergence as a strategic hub for sustainable industrial investment, leveraging its competitive energy mix and advanced infrastructure. This creates significant opportunities for businesses to engage in green energy and steel supply chains, while investors should focus on the growing green hydrogen ecosystem and Oman’s role in global low-carbon steel markets. Smart entrepreneurs must consider partnering in or supporting the green transition, aligning with Oman’s energy transition plan to capitalize on long-term sustainable growth and export potential.
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