Oman’s Jindal Shadeed Iron and Steel (JSIS) will set up a USD 3 bn green steel plant in Duqm’s Special Economic Zone (SZE), Bloomberg reports. The plant is expected to yield 5 mn tons of steel annually, which will be used for automotive products, wind turbines, and consumer goods industries, Jindal Shadeed CEO Harssha Shetty tells the business information service. The facility — for which land has been allotted — will be powered by green hydrogen and is set to be completed by 2026.

Where is the money coming from? “The company, in due course, will evaluate the optimum mix of debt and equity to maximize shareholder value and minimize cost of capital,” Shetty told Bloomberg.

Where is the supply headed? The plant’s output will be primarily geared towards export to the Middle East, Europe, and Japan, with some 30-40% earmarked for consumption in Oman and the wider GCC region. Shetty expects demand for flat steel in the GCC to grow to 11 mn tons in 2030, up from 7.2 mn tons in 2021.

Green steel is on the regional radar: Brazil’s Vale signed an MoU with Saudi Arabia’s Future Investment Initiative in November to study the establishment of a USD 1.1 bn iron ore pellet mega hub powered by greener alternatives. Vale also signed MoUs with the UAE and Oman for similar projects.

SOUND SMART- The iron and steel sector is the largest industrial producer of CO2 — other than industries involved in power generation — and accounts for some 7-9% of all direct fossil fuel emissions.