Full offtake coverage secured for Oman’s green iron project

MUSCAT: In a significant boost to Oman’s ambition to localise heavy industry around its emerging green hydrogen ecosystem, a leading international investor has secured full offtake coverage for its proposed green iron project at the Duqm Special Economic Zone.
Singapore-headquartered Meranti Green Steel announced that it has concluded binding offtake agreements covering the entire output of Module 1 of its planned 2.5 million tonnes per annum (tpa) hydrogen-ready Hot Briquetted Iron (HBI) facility. The agreements materially strengthen the project’s commercial viability and bankability as the company advances toward a targeted Final Investment Decision (FID) by mid-2026.
Under the agreements, 1.0 million tpa of HBI will be supplied to German-based global industrial materials trader Thyssenkrupp Materials Trading, while 0.25 million tpa has been committed to INTERFER Edelstahl and INTERFER Austria. The remaining volumes will be allocated to Swiss-based commodity trading and mining major Glencore, as well as to Meranti’s upcoming steel plant in Rayong, Thailand, supporting the ramp-up of green hot-rolled coil production.
Importantly, the offtake arrangements also provide for the allocation of additional volumes to the same partners for a potential second HBI module in Oman.
“These long-term offtake agreements underpin the commercial viability of Meranti’s green HBI project in Oman and support continued progress toward FID,” the company said, adding that the contracts include key commercial terms such as pricing frameworks, product specifications, delivery start dates, and contract duration.
Meranti noted that the Duqm project is differentiated from conventional HBI plants through its planned use of a blend of natural gas and green hydrogen, enabling the production of transportable low-CO₂ iron feedstock tailored for Electric Arc Furnace (EAF) steelmaking in Europe and the Far East. The project will leverage Oman’s competitive energy costs, access to renewable power, local raw material processing capabilities, and supportive regulatory environment to deliver cost-competitive low-carbon iron at scale.
Under a memorandum of understanding signed late last year, Meranti intends to source its future green hydrogen requirements from Amnah, a consortium awarded a concession to develop an integrated green hydrogen project in Duqm. The consortium—comprising Copenhagen Infrastructure Partners (CIP), Blue Power Partners, and Al Khadra (Hind Bahwan Group)—plans to produce 200,000 tonnes of green hydrogen annually, powered by approximately 4.5 GW of renewable energy capacity.
KfW IPEX-Bank is advising Meranti as Lead Arranger, while Jebsen & Jessen Industrial Solutions (JJIS) has been appointed Key Partner for the project’s export credit agency (ECA)-backed debt financing.
With FID targeted for mid-2026, full commissioning of the Duqm HBI project is planned for mid-2029.