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Construction begins for $3bn green steel project in Duqm

27 Nov 2023 By OUR CORRESPONDENT

Duqm – Vulcan Green Steel, a part of Jindal Steel Group, is set to make history in the global steel industry by building the world’s largest green hydrogen ready steel plant in the Special Economic Zone at Duqm (SEZAD) with an investment exceeding $3bn.

The groundbreaking ceremony for the project, combined with a symbolic planting of an ‘Eternal Green Tree’, took place in Duqm on Monday, in the presence of H E Dr Ali bin Masoud al Sunaidy, Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ), Naveen Jindal, Chairman of Jindal Group and Venkatesh Jindal, Vice Chairman of Vulcan Green Steel. The event was attended by numerous dignitaries representatives from the government institutions, leaders from the private sector, and an executive team from both Vulcan Green Steel and the Jindal Group in Oman.

The green steel project to be carried out by Vulcan Green Steel under the Jindal Steel Group in Duqm with investments exceeding $3bn, represents a pioneering step in Oman’s journey to becoming a global hub for sustainable industries. The groundbreaking of Vulcan Green Steel marks a significant milestone in the global steel industry and underscores Oman’s commitment to sustainable and environmentally friendly industrial development.

In a press statement, Venkatesh Jindal said, “Oman stands as a beacon of hope for a greener future and Vulcan Green Steel aligns perfectly with these opportunities. Moreover, Oman’s progressive and visionary government has earmarked extensive land parcels for renewable energy projects, which will be essential for our vision of greener steel production, starting before the end of this decade.“

Scheduled for completion by 2026 and with production starting in 2027, the green steel project of Vulcan Green Steel in Duqm will establish a fully integrated green hydrogen-ready steel plant, producing 5 million metric tonnes per annum (MTPA) of green steel with approximately 85% fewer CO2 emissions than the current global average, before the end of the decade. The state-of-the-art steel facility will revolutionise eco-friendly industrial operations and cater to the automotive, wind turbine, and consumer goods sectors.

This project is estimated to achieve an astounding twelve million tonnes per annum in CO2 savings. By this, it will make a significant positive impact on global emissions reduction.

Another pivotal innovation at Vulcan Green Steel’s project involves the extensive utilisation of renewable energy sources in steel production. While wind and solar power will provide around 16 hours of electricity, Vulcan Green Steel is actively exploring additional storage options to source 24×7 green energy to bridge the remaining 7–8 hours.

This will be done in partnership with Vulcan Green Energy and OQ Alternative Energy that have signed an agreement to explore joint development of Integrated Energy Valley (IEV), first of its kind project in GCC, that combines solar, wind and energy storage to provide round the clock, cost competitive green energy to meet the growing decarbonisation needs of large industries in Oman such as Vulcan Green Steel.

The Direct Reduction Iron (DRI) Plant for which the foundation is laid in the ceremony on Monday, is going to be a green steel plant with the flexibility of transition from 100% natural gas to 100% green hydrogen, with a unique combination of hot DRI and hot briquetting system. It is going to be the largest single module plant (2.5 MTPA) in the world.

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