MUSCAT: Firming up plans for its strategic investment in Oman, Singapore-based Meranti Green Steel has formally mandated KfW IPEX-Bank — a leading German project and export finance institution — as Lead Arranger for its green iron project in the Special Economic Zone at Duqm (SEZAD).
It has also appointed Jebsen & Jessen Industrial Solutions (JJIS), a German-based engineering and industrial services provider, as Key Partner for the project’s export credit agency (ECA)-backed debt financing.
Meranti plans to establish a 2.5 million tonnes per annum (Mtpa) Hot Briquetted Iron/Direct Reduced Iron (HBI/DRI) plant in the first phase at SEZAD. HBI and DRI are premium iron ore products used as clean, high-quality feedstock for Electric Arc Furnace (EAF) and other modern steel mills, offering a low-carbon alternative to traditional blast-furnace inputs and enabling the production of greener steel.
The proposed Al Duqm project will be powered by a calibrated mix of natural gas and green hydrogen, with hydrogen use progressively increased to further reduce carbon intensity.
While part of the production is earmarked for Meranti’s upcoming green steel plant in Rayong, Thailand, a portion will be supplied to UK steelmakers seeking low-carbon feedstock.
Announcing the financing mandate, Meranti stated: “This milestone strengthens the foundation for what will be the first large-scale, independent green iron project of its kind in the region. It is designed from the ground up to deliver cost-competitive, low-carbon HBI to global markets”.
“I look forward to working closely with both KfW IPEX-Bank and Jebsen & Jessen on building a well-coordinated ECA financing platform. We thank both institutions for their partnership and trust. This collaboration reflects strong confidence in our strategy to deliver low-carbon HBI from Oman”, added Louis Kay, Chief Financial Officer, Meranti Green Steel.
“We are proud to work with partners who share our conviction that sustainable steelmaking is no longer a future ambition. It is an industrial reality in the making, offering a high-quality complement to scrap in the fast-growing Electric Arc Furnace steelmaking route”, he further noted.
KfW IPEX-Bank, headquartered in Frankfurt am Main, specialises in structuring and arranging long-term financing for major industrial, energy and infrastructure projects. Hamburg-based Jebsen & Jessen Industrial Solutions (JJIS) supports complex industrial ventures through equipment procurement, export-finance facilitation and turnkey engineering solutions.
Meranti says it plans to make a Final Investment Decision (FID) on the Al Duqm project by mid-2026, with commissioning targeted for mid-2029.
Last month, the company revealed that it had signed offtake term sheets — preliminary, non-binding commitments — covering not only the first phase of HBI output from its Oman investment, but also a potential second phase.
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