A multibillion-dollar green steel cluster planned by Suhar-based Jindal Shadeed Group for establishment in Duqm Special Economic Zone (SEZ) has the potential to create an estimated 2,000 direct jobs, in addition to 2,500 indirect jobs, as well as spawn the growth of numerous small and medium enterprises (SMEs), according to a key executive.
Naveen Ahlawat, Chief Procurement Officer & Head - Green hydrogen and Gasification Projects at Jindal Steel and Power Limited (JSPL), the parent India-based group, said the landmark investment will also position the Sultanate of Oman at the forefront of the global green steel industry.
“Green steel produced from this plant will be exported to countries like Japan and Europe, while also fulfilling the requirements of the GCC region,” said Ahlawat. “Oman will be turbo-charging green steel manufacturing across the world. Demand centres have been created in Japan and Europe, but Oman will be the first country that will be turbocharging green steel production.”
Earlier this month, Jindal Shadeed Group signed agreements with authorities in Duqm for the establishment of a green steel cluster with an investment of around $3 billion. Green steel output is targeted at 5 million metric tonnes per annum and earmarked for the automobile, wind energy and consumer durables sectors locally and globally.
Speaking at the Green Hydrogen Summit Oman 2022 (Conference & Exhibition), which was held in Muscat recently, Ahlawat said the green steel cluster at Duqm will be powered by green hydrogen produced through investments in 7 – 9 gigawatts (GW) of renewables and around 2 GW of electrolyzer capacity.
Duqm, with its proximity to some of the world’s most promising renewables-rich acreage, is ideal for investment in hard-to-abate industries, notably steel production, said Ahlawat. Availability of green steel locally has the potential to ignite the growth of a green steel-based downstream manufacturing cluster, he noted.
Importantly, the project’s contribution to the Omani economy is set to be immense, the executive pointed out. “Total investment in this project is envisaged at close to $3 billion, and it will contribute close to $3.5 billion in value to the Omani GDP. It is also going to add to downstream value addition for so many ancillary units downstream of this plant. There will be approximately 2,000 direct jobs created, in addition to around 2,500 indirect jobs. So we strongly believe that the green steel project will serve as a great test of the value addition created downstream of green hydrogen.”
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