In line with Oman’s green steel plans, Singapore-based Meranti Green Steel announced that it has secured offtake commitments for the entire output of Hot Briquetted Iron (HBI) from its low-carbon iron project. HBI is a critical feedstock for steel production.
Meranti plans to build a plant with a capacity of 2.5 million tons per year (Mtpa) for the first phase of HBI production. A second phase, doubling the production capacity, is also planned. Company CEO Sebastian Langendorf said, “The HBI offtake agreements show that green HBI is no longer just an idea; it is becoming a bankable and commercially viable feedstock.”
The plant will be located in the Duqm Special Economic Zone (SEZAD) and will operate with a controlled mix of natural gas and green hydrogen. Hydrogen usage will be gradually increased to achieve low-carbon production. Part of the output will be used in Meranti’s green steel plant in Thailand, while the remainder will be supplied to UK steelmakers seeking low-carbon feedstock. The company aims to make the final investment decision (FID) for the Duqm project by mid-2026, with commissioning scheduled for mid-2029.
This development is seen as a positive signal for the acceleration of green iron and steel facilities planned in Duqm SEZ. By around 2030, the availability of green hydrogen is expected to attract energy-intensive and hard-to-decarbonize sectors to the region.
Among the projects is Brazilian mining company Vale, planning an integrated industrial complex (Mega Hub) to produce HBI and low-carbon iron products using green hydrogen and clean energy. Japanese companies Kobe Steel and Mitsui & Co. have signed agreements with Omani authorities to develop a low-CO₂ iron project in Duqm.
India-based ACME Group is building a green ammonia project in Duqm SEZ and plans to establish a 1.2 Mtpa DRI plant powered by green hydrogen. ACME has signed a long-term, binding 10-year agreement with Vietnam-based Stavian Industrial Metal for the sale of 0.8 Mtpa of green iron feedstock (Hot Briquetted Iron and DRI).
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