Kobe Steel

The project envisages the production of 5 million tons of DRI per year

Oman’s State Authority for Special Economic and Free Zones (OPAZ) has signed a memorandum of understanding with Japanese steel producer Kobe Steel and global trade investment company Mitsui&Co regarding the development of a DRI production project. Steel Times International informs about it.

The project is planned to be implemented in a special economic zone in Duqm. It is about the annual production of 5 million tons of direct reduction iron (DRI) using the MIDREX Kobe Steel process. A plan for further expansion is being studied. In the long term, the project is aimed at further decarbonization by replacing natural gas with hydrogen, as well as carbon capture, utilization and storage. DRI is expected to be supplied for the Asian and European markets.

According to Kobe Steel’s statement, Japanese companies entered into a land reservation agreement with the Port of Duqm Company S.A.O.C. They are also discussing the supply of natural gas by the Ministry of Energy and Minerals of the Sultanate of Oman. After confirming the location and scope of cooperation in the special economic zone in Duqm, Kobe Steel and Mitsui will begin the development of a feasibility study.

As GMK Center reporyed earlier, the Omani company Jindal Shadeed Group plans to build a plant for the production of green steel in the special economic zone in Duqm. It is planned that the plant will have a capacity of 5 million tons of steel per year, green hydrogen and renewable energy sources will be used in production. Construction should be completed by 2026.

Also, Nippon Steel plans to produce direct reduction iron with hydrogen to reduce carbon emissions and meet the growing demand for green steel. At the same time, the company will continue to invest in the production of coking coal and purchase it for steel production. Nippon Steel is keen to secure supplies of this raw material as new mine development projects are scaled back due to climate targets.