Hydrogen Rise, Jindal Shadeed Iron & Steel and Sohar Port and Freezone have signed an agreement to evaluate the development of first green hydrogen plant at Sohar, which will decarbonise the steel production process at Jindal Shadeed´s steel manufacturing plant

Muscat – Hydrogen Rise, a Germany-based company specialising in clean hydrogen technologies, will develop, build and operate a green hydrogen facility at Sohar to supply green hydrogen to Jindal Shadeed Iron & Steel’s steel manufacturing facility.

Jindal Shadeed, Hydrogen Rise and Sohar Port and Freezone (SOHAR) have signed an agreement to evaluate the development of this first green hydrogen plant at Sohar, which will decarbonize the steel production process at Jindal Shadeed´s steel manufacturing plant, according to a press statement issued by SOHAR on Tuesday.

Together, the partners will assess the potential to produce steel in a completely sustainable manner to reduce emissions, lower the Jindal Shadeed complex’s carbon footprint and preserve gas reserves for other applications across the country.

After conducting techno-economic feasibility studies, the first phase of the project will include the operation of a 35MW electrolyser capacity by mid-2024, paired with a solar renewable energy plant. Following this first phase, an upscaling path to a potential 350MW electrolysis capacity will be evaluated, the statement said.

The production of green steel has the potential to provide a huge boost to Oman’s industries and economy as the global demand for decarbonized steel products is expected to increase significantly in coming years.

Jindal Shadeed’s expertise in steel production can see the company become an early pioneer in utilising innovative decarbonisation technologies and in substituting natural gas with green hydrogen in the steel manufacturing process to become a major producer in the fast-developing global market for green steel.

Olav Carlsen, CEO of Hydrogen Rise, Oman, said, “We are excited to work with Jindal Shadeed and SOHAR to evaluate the development of a step-wise scalable and bankable project for a very innovative decarbonization process – from a starting electrolysis size of 35MW to a step-by-step ten-fold scaling of 350MW. This approach, plus the very cost competitive renewable energy production in Oman and the commitment to decarbonisation processes here in the country will give all partners a significant competitive edge in the developing global market for green steel.”

“It is no doubt a step in the right direction as we look at ways to decarbonise industries in Oman and their dependency on gas. If successful, this mechanism can be rolled out to industrial zones across the country and around the world,” he added.

Sanjay Anand, chief operating officer and head of Jindal Shadeed Iron & Steel in Oman, said, “The range of products that are possible to be produced using this method has the potential to transform the steel industry in Oman. At Jindal Shadeed, we are very proud to adopt an environment-friendly approach to steel making and have some of the world’s lowest carbon intensity footprints. With this, we open new markets to us and reassure all customers that our products are not only of the highest quality but also made sustainably with the health of the community in mind.”

Sohar Port and Freezone CEO Mark Geilenkirchen said, “SOHAR is ideally-positioned to become a major exporter of green steel across the world and lead the way in facilitating the production, transportation and utilisation of clean hydrogen. This agreement is the first major step towards developing a viable alternative to gas, which will promote sustainable practices for all industries operating within SOHAR and attract new businesses to our clusters. We look forward to working with Jindal Shadeed and Hydrogen Rise on this project and to break new ground in the transition towards renewable sources of energy.”

Green hydrogen is endorsed by the International Energy Agency as one of the best alternatives to gas for industry and helping countries around the world to meet environmental targets. The potential of establishing a completely sustainable production procedure to produce and export green steel can transform Oman’s economy and create brand new industries, both in metals and in the production, storage and export of the hydrogen itself.