Oman’s Jindal Shadeed Iron and Steel (JSIS) will break ground on its mega green steel complex in the Duqm Special Economic Zone this year, CEO Harssha Shetty tells Zawya. The USD 3 bn hydrogen-fueled project will be powered by some 7-9 GW of clean energy and have a yearly production capacity of 5 mn tons of green steel.

The timeline: The first phase of the project will begin production in 2026 and a second phase is slated to become operational in 2027, Zawya notes.

Where are they sourcing the energy from? JSIS is exploring the development of new solar and wind energy farms to produce energy feedstock for hydrogen generation, indicating that there are ongoing “advanced talks” with renewables developers to source the clean energy needed to power the 2k sq km facility and its electrolyzers, Shetty tells Zawya. Specific company names were not disclosed.

What will the steel be used for? The new facility will be the first of its kind in the GCC to produce auto-grade flat sheets for the automotive, wind turbines, and appliances industries in international markets including Europe and Japan, Shetty says.

The export market is expected to heat up: ESG awareness will drive a double digit growth in demand for the sustainable steel in European markets over the coming decade, Shetty says, and only 30-40% of the green metals produced in the JSIS complex will be earmarked for the Omani and wider GCC market. He expects demand for flat steel in the GCC to grow to 11 mn tons in 2030, up from 7.2 mn tons in 2021.