Meranti signs pact for Oman green iron project

MUSCAT: Meranti Green Steel said it has signed an agreement with a long-term strategic investor to accelerate development of its green iron project in Oman, a move the company described as a key step towards reaching a Final Investment Decision (FID) targeted for mid-2026.
In a statement posted on its official social media channels, the company said the strategic investment would strengthen the project’s financial foundation and support the development of what it called a globally competitive, low-carbon industrial hub in Oman.
Louis Kay, Meranti Green Steel’s Chief Financial Officer, said the agreement marked “a significant milestone” in establishing bankable green iron production in Oman, adding that the project was now positioned to attract additional strategic partners and secure durable capital.
Meranti did not disclose the investor’s identity, the size of the investment, or commercial terms.
The announcement comes as Oman seeks to build a new low-carbon industrial base linked to its emerging hydrogen economy, with policymakers and project developers positioning the Sultanate of Oman as a competitive location for export-oriented green molecules and downstream products such as green iron, green steel and other low-emissions materials.
Industry executives have argued that Oman’s geography, access to ports and industrial zones; and renewable energy potential could support large-scale industrial projects aimed at serving international markets under tightening carbon rules. Europe, in particular, is moving to extend carbon costs to imports through the EU’s Carbon Border Adjustment Mechanism (CBAM), a shift that is pushing steelmakers and supply chains to seek lower-emissions feedstocks.
Meranti said that, in the coming months — subject to conditions on the ground — it intends to complete pre-FID engineering and commercial studies, engage technology partners and advance site and infrastructure planning.
The company framed the project as supporting Oman’s broader energy transition ambitions, without providing further operational details.
The deal is likely to be read by market participants as another signal of investor interest in Oman’s evolving green industrial ecosystem, where projects are increasingly judged not only by technical feasibility but by bankability, infrastructure readiness and the credibility of long-term offtake pathways.