MUSCAT : With an aim to provide a near-term decarbonisation solution to the Omani steelmaking industry, an agreement was signed to produce five million tonnes of Direct Reduced Iron (DRI) annually.
The Public Authority for Special Economic Zones and Free Zones (OPAZ）signed a Memorandum of Understanding (MoU) with Kobe Steel, a Japanese leading steelmaking, and Mitsui & Co., Ltd., a global trading investment company, to develop low CO2 iron metallics project in the Special Economic Zone at Duqm (SEZAD).
Kobe Steel and Mitsui signed a land reservation agreement with Port of Duqm Company and inked another MoU with the Centralized Utilities Company (Marafiq), to supply the project with power and water during the ceremony. In the long run, the project will aim for further decarbonisation through measures such as replacement of natural gas with hydrogen and carbon capture, utilisation and storage, with a goal to expand production capacity as well.
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Further, Kobe Steel and Mitsui will conduct the detailed business study, with an aim to commence low CO2 iron metallics production by 2027. The product will be supplied to businesses in Asia including Kobe Steel and other global markets such as Europe.
“Bringing this unique project to the Special Economic Zone at Duqm marks a valuable addition to the already under development list of remarkable international metal and mineral projects and green energy projects in the Zone and will attract other related and supporting industries and businesses,” said HE Dr. Ali bin Masoud Al Sunaidy, Chairman of the Public Authority for Special Economic Zones and Free Zones after signing the MOUs.
“The project is a great addition to the steelmaking industry in the Sultanate of Oman, as well as it will enhance In-Country Value (ICV) by supporting local Small and Medium-Sized Enterprises (SMEs) and by offering job openings,” Sunaidy added.
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