Jindal Steel Duqm procures second plant for Oman complex

MUSCAT: Jindal Steel Duqm, which is constructing the first-ever green steel complex at Duqm Special Economic Zone in the Sultanate of Oman, is procuring a second hydrogen-ready direct reduction (DRI) plant for the production of hot-briquetted iron (HBI) — a move that will bolster the Duqm complex’s output to a targeted 5 million tonnes per annum (mtpa) at full capacity.
The partnership of Italian steel engineering powerhouses Tenova and Danieli will supply the second DRI plant, replicating a similar order for the supply of the first DRI plant made in late 2023. Each plant, based on their Energiron technology and sized at 2.5 mtpa of HBI, will contribute to a world-scale capacity of 5 mtpa when both phases of the steel mill complex are completed and brought into operation by around 2030.
Announcing the confirmation of the order for the second DRI plant, Danieli said in a post on Wednesday: “The direct reduction plant will be installed in Al Duqm, in the Al Wusta Governorate of the Sultanate of Oman, where the first Energiron DRI plant is under construction and scheduled to start operation in 2026”.
The Italian firm further added: “This new DRI plant will feature Zero-Reformer Energiron Direct Reduction technology, jointly developed by Tenova and Danieli, and will produce 2.5 million tonnes per year (mtpa) of direct reduced iron (DRI), achieving an average metallisation rate of 94%. The hot DRI will be briquetted to produce Hot Briquetted Iron (HBI), suitable for storage or export”.
Wholly owned by Indian power and steel conglomerate Jindal Group, Jindal Steel Duqm (previously known as Vulcan Green Steel) broke ground on its $3 billion project at Duqm SEZ in November 2023. The plant’s Energiron DRI technology — hybrid by design — will enable operation with natural gas and up to 80% hydrogen, or any mix of the two, without requiring modifications to the plant.
“This project will leverage Oman’s natural gas and renewable-energy potential, converted into hydrogen. Carbon capture facilities — a naturally embedded feature of the technology — will allow for the reuse of the captured carbon and will be integrated seamlessly into Jindal Steel Duqm’s larger green steel complex”, Danieli noted in its post.
Significantly, Al Duqm is shaping up to be a hub for international investments in green steel that seek to leverage the availability of low-carbon hydrogen in the area starting from 2030.
Kobe Steel, in partnership with Mitsui & Co, has signed a memorandum of understanding (MoU) with Oman’s authorities to explore a low-carbon iron metallics facility in the SEZ. The project aims to produce 5 mtpa of direct reduced iron (DRI), starting with natural gas and transitioning to hydrogen in the future.
Similarly, Brazilian mining giant Vale has announced plans to invest in a Green Metallic Mega Hub in Al Duqm, intended to produce low-carbon DRI as feedstock for steel mills across the wider Middle East region. Singapore-headquartered Meranti Green Steel (MGS) has also outlined plans for a 2.5 mtpa Hot Briquetted Iron (HBI) plant in its first phase in Al Duqm.