Singapore based Meranti Green Steel announced that it has secured full offtake coverage for the first phase of its planned green Hot Briquetted Iron (HBI) facility in Oman’s Duqm Special Economic Zone, describing the development as a key commercial milestone for the project.
The agreements cover the entire capacity of the first module, which is designed to produce 2.5 million tonnes per year. Under the arrangements, 1.0 million tonnes per annum will be supplied to Thyssenkrupp Materials Trading, while 0.25 million tonnes per annum have been allocated to INTERFER Edelstahl and INTERFER Austria. The remaining volumes will be delivered to Glencore and to Meranti’s planned steel plant in Rayong, Thailand.
The offtake agreements also предусматри additional allocations to the same counterparties for a potential second HBI module in Oman, subject to certain conditions being met. In terms of market focus, Thyssenkrupp will serve Germany, Belgium and the Netherlands, INTERFER will focus on Italy and Austria, while Glencore will target other markets.
Meranti Green Steel said the long term agreements strengthen the project’s financial viability and support progress toward a targeted Final Investment Decision (FID) in mid-2026. The contracts include key commercial terms such as pricing structures, product specifications, delivery start dates and contract durations.
The Duqm facility is planned to produce low-carbon HBI using a production model that combines natural gas with green hydrogen. Leveraging Oman’s competitive energy costs, access to renewable power and supportive regulatory framework, the project aims to supply Electric Arc Furnace (EAF) steelmakers with a cost-competitive, low-CO₂ iron feedstock. Full commissioning of the plant is expected by mid-2029.
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