Oman's first 'hydrogen-ready' green steelworks worth $3bn begins construction
The facility could be the world’s largest green steel plant by output once it starts up in 2027, but may never use H2
Vulcan Green Steel, a subsidiary of India’s Jindal Steel Group, has kicked off construction for its $3bn green steelworks in Oman.
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However, while the green steel project could be one of the world’s largest on start-up in 2027 with an expected output of five million tonnes a year, its direct iron reduction plant may not run on hydrogen — raising questions as to how “green” the steel will be.
The Omani government has already awarded land in the eastern port of Duqm, where the green steelworks will also be built, to development consortia planning hydrogen projects following its first auction.
Although none of these projects have yet reached a final investment decision (FID), the combined hydrogen production capacity is expected to reach 700,000 tonnes per year — although how much of this will be on line this decade is also unclear.
Hydrogen for producing green steel is gaining traction in the region.
The company has reportedly sourced sufficient wind and solar to cover about 16 hours per day and is exploring options with state-owned oil and energy firm OQ for storage to cover the remaining seven to eight hours.
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