Oman’s future in low-carbon steel: From pilot to practice

Carbon capture is rapidly moving from experimental pilot projects to full industrial deployment in the global steel sector, as producers confront tightening climate regulations and growing demand for low-carbon materials. With steel responsible for roughly 7 to 9 per cent of global carbon dioxide emissions, and industry pressure accelerating decarbonisation, technologies like carbon capture and hydrogen-based steelmaking are becoming core components of steel’s transformation.
Worldwide, major steelmakers are beginning to install carbon capture systems on operating plants rather than waiting for full technology replacements. Retrofitting capture units onto blast furnaces and direct reduced iron (DRI) facilities allows emissions reductions while sustaining output. In Europe, projects already capture CO₂ from blast furnace gas, compress it, and transport it for permanent underground storage, showing that emissions can be reduced at scale without shutting down existing assets.
Gas-based DRI plants are especially attractive because they generate more concentrated CO₂ streams that are easier and less costly to capture. Many industrial operators in Europe and the Middle East are piloting capture on DRI units, demonstrating that a significant share of plant emissions can be removed through bolt-on systems. Alongside capture, carbon utilisation activities, transforming captured CO₂ into products like methanol and carbon-cured concrete, are linking decarbonisation with new industrial value chains.
Hydrogen-based steelmaking is progressing in parallel. In northern Europe, new plants are producing iron using hydrogen instead of coal, sharply lowering emissions. Buyers in automotive and construction sectors are already signing supply agreements for this lower-emission steel, signaling strong market demand for cleaner inputs. The combination of hydrogen ironmaking and selective carbon capture on emissions that remain is emerging as a leading model for near-zero-emission steel.
These global developments align closely with Oman’s industrial transition strategy. The Sultanate hosts established steel and metals clusters in Suhar and Duqm and is investing in large-scale green hydrogen projects alongside exploring carbon storage potential. This creates a practical pathway for integrating capture technology into both existing and future facilities.
A major example is Jindal Steel Duqm, which is developing a 5 million tonnes per annum hydrogen-enabled green steel complex in the Special Economic Zone at Duqm. Designed to be one of the world’s most advanced hydrogen-ready steel facilities, it consists of two direct reduced iron (DRI) modules of 2.5 Mtpa each and is expected to begin commissioning in phases from 2028 onward. Both units are engineered to operate initially on natural gas but are capable of switching to green hydrogen as supply infrastructure matures, with plans to inject up to 10 to 15 percent hydrogen by the mid-2030s; this evolution supports cleaner steelmaking and reduces lifecycle emissions.
Jindal Steel Duqm has also ordered a second hydrogen-ready DRI plant using Danieli and Tenova’s Energiron Zero-Reformer technology, which can run on blends of natural gas and up to 80 per cent hydrogen without modification. This technology includes provisions for carbon capture facilities that can reuse captured carbon material as part of a larger green steel complex.
These developments in Duqm are complemented by Oman’s broader energy ecosystem. Initiatives by OQ Alternative Energy (OQAE) and partners to build renewable energy and clean power infrastructure, such as integrated energy valleys supplying clean electricity to heavy industry, align with hydrogen production and ultimately support lower-carbon steelmaking across industrial hubs, including Suhar.
Oman’s subsurface geology strengthens the case for carbon capture. Depleted oil and gas reservoirs and deep saline formations around the Sultanate are suitable for long-term CO₂ storage, and decades of experience in subsurface injection through enhanced oil recovery give the country technical expertise that can support multi-sector carbon storage networks. A shared storage infrastructure could serve steel, cement, and petrochemical sectors, lowering costs through scale and regional cooperation.
Trade policy adds urgency to this transition. New carbon border adjustment mechanisms and low-carbon procurement standards in key export markets are beginning to favor steel produced with documented lower emissions. Producers able to demonstrate carbon capture or hydrogen-based production routes are likely to gain competitive advantage.
The ongoing potential of carbon capture in steel positions Oman to lead in low-carbon heavy industry. Future projects in Duqm and Suhar, particularly Oman’s hydrogen-ready green steel complex by Jindal Steel Duqm, backed by renewable energy partnerships and hydrogen supply development, can integrate carbon capture technology from the design phase. Combined with OQAE’s clean power initiatives and the region’s geological storage capacity, these facilities exemplify how carbon management and hydrogen strategies can be integrated into industrial growth. By adopting these solutions, Oman not only reduces emissions but also strengthens its competitiveness in global steel markets, creating a sustainable pathway for future industrial expansion