Agreement for first green hydrogen plant at Sohar

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

The partners will assess the potential to produce steel in a completely sustainable manner to reduce emissions, lower the complex’s carbon footprint and preserve gas reserves for other applications across the country. After conducting techno-economic feasibility studies, the first phase will include the operation of a 35MW electrolyzer capacity by mid-2024, paired with a solar renewable energy plant. Following this first phase, an upscaling path to a potential 350 MW electrolysis capacity will be evaluated.

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

Hydrogen Rise, based in Oman and Germany will develop, build and operate the green hydrogen facility at Suhar supplying green hydrogen to Jindal Shadeed’s steel manufacturing facility.

Jindal Shadeed’s expertise in steel production can see the company become an early pioneer in utilizing innovative decarbonization 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 Port and Freezone to evaluate the development of a step-wise scalable and bankable project for a very innovative decarbonization process - from a starting electrolysis size of 35 MW to a step-by-step ten-fold scaling of 350 MW. This approach, plus the very cost-competitive renewable energy production in Oman and the commitment to decarbonization 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 decarbonize 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.”

Sanjay Anand, chief operating officer and Head of Jindal Shadeed Iron and 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.”

Mark Geilenkirchen, CEO of SOHAR Port and Freezone, said, “Suhar is ideally-positioned to become a major exporter of green steel across the world and lead the way in facilitating the production, transportation, and utilization 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 helps 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.