MUSCAT, FEB 18
A green hydrogen-ready integrated steel plant planned in the Special Economic Zone at Duqm (SEZAD) has the potential not only to position the Sultanate of Oman as a pioneer in green steel production in the GCC region, but also drive the growth of a flourishing downstream steel-based sector, according to the project’s promoters.
Suhar-based Jindal Shadeed Iron & Steel (JSIS) says the $3 billion green steel venture due to come into operation by 2026, along with its existing integrate steel complex in Sohar Port, will together contribute an aggregate of around $3.5 billion annually to the national GDP. This contribution will represent a 20 per cent increase in Oman’s non-oil GDP, it stated.
The attendant socio-economic benefits from the renewables-powered project – potentially a first in the region – were outlined in the latest newsletter of Jindal Shadeed. Last December, the steelmaker – a wholly-owned subsidiary of Indian business conglomerate Jindal Power and Steel Ltd had signed agreements with Omani authorities for the establishment of a green steel cluster in Duqm with a capacity of 5 million metric tonnes per annum (mtpa) of green steel targeted primarily at the automobile, wind energy and consumer durables sectors locally and globally.
“Based in Duqm, which is dubbed the ‘Powerhouse of Modern Oman”, our new sustainable steel plant can produce 5 mtpa of green steel with 80 per cent fewer CO2 emissions than today’s global emission averages. This is an unmatched feat in the GCC thus far,” the company stated in the newsletter.
Energy for the project will come from an ecosystem of solar and wind farms offering 7 – 9 gigawatts of capacity. This will enable the plant to achieve “record-low” emissions of less than 0.2 tonnes of CO2 per tonne of steel versus the current global average of 1.8 tonnes of CO2 per tonne of steel. Additionally, green hydrogen output from the renewable energy ecosystem will be used in the direct reduction (DRI) process, based on Electric Arc Furnace (EAF) technology, thereby keeping CO2 emissions to a minimum.
“When functional, we will operate the first plant in the GCC producing auto-grade steel that will support valuable sectors including automotive, wind, and domestic appliances across Europe, America, Asia and other regions,” the report noted.
Significantly, the greening of the steelmaking process will eliminate the production of a staggering 225 million metric tonnes of greenhouse gases (GHG) over the Duqm project’s overall lifecycle, according to the company.
Harssha Shetty, CEO, was also quoted as saying that the company will generate over $800 million of in-country value (ICV) for Oman through the value chain it creates.
“JSIS has contributed US$5.5 billion to Oman’s GDP over the last five years and proudly provided a share of 1.31 per cent to the overall GDP in 2021. The additional $3 billion investment in the new green steel plant is expected to raise annual GDP contributions to $3.5 billion, which is approximately a 20 per cent increase in Oman’s non-oil GDP.”
Socio-economic and entrepreneurial spinoffs will be sizable as well, the CEO stated. “We are also expected to produce a downstream value-addition of $350 million through value-added products and business opportunities for SMEs, and anchoring a large societal impact through the 2,000 direct jobs that will be created. The green steel plant will also create 2,500 indirect jobs due to the growth of allied industries in the supply chain,” he added.
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