Oman could become a leader in global green steel industry – IEEFA

Oman has every opportunity to become a leader in global green steel industry thanks to its natural and geographical advantages, strong industrial infrastructure, and promising strategic planning. This is stated in a new report by the Institute for Energy Economics and Financial Analysis (IEEFA).

According to the study, Oman already has a fully integrated steel production ecosystem, including iron ore enrichment, pellet production, direct reduction technology, and electric arc furnaces. The country also plans to develop new ore enrichment capacities.

However, without switching from gas to green hydrogen, new DRI projects will not be able to claim the benefits of corresponding market premiums.

The country also has great potential for renewable energy, given the significant investments in both solar and wind generation. Cheap, reliable clean energy could be a major advantage for steel producers in Oman.

The country has a clear, coordinated strategy to become a leading center for green hydrogen. Oman aims to produce 1-1.5 million tons by the end of the decade. The metallurgical industry could play a central role as the main buyer.

The existing advantages are reinforced by strong political support and a favorable regulatory framework.

Traditionally, Oman’s ferrous metallurgy industry has been dominated by two companies: Jindal Group and Vale. However, the country is now attracting new players such as Meranti Green Steel, Mitsui, and Kobe Steel, as well as green hydrogen and energy developer ACME Group.

As Soroush Basirat, energy finance analyst at Global Steel at IEEFA and author of the report, notes, Oman is at a turning point

“With the potential to supply green iron to markets such as the EU at competitive prices, the country has a significant advantage over other producers. And it is well positioned to lead the transition to green iron and steel, as it is managing this transition in a very structured way,” he explained.

Oman will build the first environmentally friendly ship recycling plant in the Middle East. Initially, the plant will produce about 2 million tons of high-quality low-carbon steel per year.