Jindal Shadeed Group to invest $3bn in green steel manufacturing facility in Oman

Jindal Shadeed Group announced that it has selected the Special Economic Zone at Duqm (SEZAD) in Oman to establish a manufacturing facility.

Slated to be the largest of its kind within the zone to produce green steel, the factory will utilise renewable energy sources in its manufacturing operations.

This announcement was made at a ceremony that included the signing of a Memorandum of Understanding and a land allocation agreement.

The Special Economic Zone at Duqm (SEZAD) is the largest economic zone in the Middle East, with an area of 2,000 square kilometres. This strategic project is being built over an area estimated at approximately 2 square kilometres in the concession zone at the Port of Duqm with an investment value estimated at $3bn.

Jindal Shadeed Group also signed an MoU with the centralised utility provider, Marafiq, to provide the plant with the utilities necessary to operate the project such as water services, seawater for cooling purposes, and other Marafiq services.

Engineer Ahmed bin Hassan Al Dheeb, deputy chairman of the Public Authority for Special Economic Zones and Free Zones, said, “The signing of the MoU and agreement is a testament to the importance of the Special Economic Zone at Duqm and further reinstates its position as a leading and attractive destination for large strategic projects that will benefit from renewable energy and green hydrogen. The availability of solar energy and wind resources throughout the year will encourage more investments in green industries and renewable energy projects in the Sultanate of Oman in general, and Duqm in particular.

“The Sultanate of Oman is making commendable efforts toward using cleaner sources of energy to meet industrial requirements. The efforts are in line with the priorities of Oman Vision 2040 to use alternative energy and sustainable natural resources. The project also serves the comprehensive national strategy which focuses on reducing emissions and achieving carbon neutrality.”

Harssha Shetty, CEO of Jindal Shadeed Group, said, “Jindal Shadeed Group is investing more than$3bn to develop this mega steel project in Duqm, and we have already obtained the necessary approvals to secure the land for our green hydrogen-ready steel project. Our goal is to produce 5 million metric tonnes of green steel on an annual basis which will create over $800m per annum in-country value addition. The plant will supply high-quality steel products to the automobile, wind energy, and consumer durables sector amongst others. There is a booming demand for green steel from ESG-conscious customers around the world, especially in Europe and Asia, who have already committed to significant reductions in Scope 3 emissions by 2030.

Talal bin Muhammad Jawad Al Lawati of the Central Services Company added: “We, at Marafiq Company, are pleased to provide the necessary water services for this vital and important project which will undoubtedly enhance the use of clean energy and green hydrogen in the Special Economic Zone in Duqm. We will ensure that all processes are in place to meet the evolving needs of the project while reinstating our commitment to contributing to other new developmental ventures as well.