The construction of Vulcan Green Steel’s (VGS) plant, Oman’s first green-hydrogen ready steel project, has commenced. The plant, located in the Duqm Special Economic Zone, will be powered entirely using green and renewable energy, and will produce 5 million metric tonnes per annum (5 MTPA) of green steel.
The Authority is currently in discussions with buyers in European and Asian markets. Speaking to the local media, Vulcan Group Senior Adviser Khalid al Jashmi pointed out, “The project will use natural gas in the first phase pending the availability and supply of green hydrogen to the site.”
He shared that the project’s steel output will still remain low in carbon due to the use of advanced technology which will reduce emissions by 40 per cent in comparison with that of regular steel plants. This project aims to produce 5 million tonnes of green steel with an investment of up to $3 billion.
“Following the first year of the project, the plant will slowly reduce its reliance on natural gas by a rate of 50 per cent until the project becomes green entirely.
Vice Chairman of Vulcan Green Steel, Venkatesh Jindal, highlighted the significance of the plant in his keynote address, “Vulcan Green Steel stands hand in hand with Oman as we collectively strive for a cleaner and greener industrial economy. It is a substantial and real investment of more than $3 billion in a state-of-the-art green hydrogen ready steel plant in Duqm, the first of its kind and the largest globally.”
Th project is scheduled for completion by 2026 and the production is expected to start in 2027. The green steel project of VGS in Duqm will establish a fully integrated green hydrogen-ready steel plant with approximately 85% fewer CO2 emissions than the current global average, before the end of the decade.
“While wind and solar power will provide around 16 hours of electricity, VGS is actively exploring additional storage options to source 24×7 green energy to bridge the remaining 7 – 8 hours,” noted the firm.
The firm further said that this will be done in partnership with Vulcan Green Energy (VGE) and OQAE that have signed an agreement to explore joint development of Integrated Energy Valley (IEV), first-of-its-kind project in GCC, that combines solar, wind and energy storage to provide round the clock, cost competitive green energy to meet the growing decarbonisation needs of large industries in Oman.
“The Direct Reduction Iron Plant for which the foundation is laid in this ceremony, is going to be a green steel plant with the flexibility of transition from 100 per cent natural gas to 100 per cent green H2, with a unique combination of hot DRI and hot briquetting system. It is going to be the largest single module plant (2.5 MTPA) in the world,” said the firm.