Oman has commenced the construction of Vulcan Green Steel (VGS) plant, the county’s first green-hydrogen-ready steel project, in the Duqm Special Economic Zone, powered entirely by green and renewable energy.
“This project aims to produce 5 million tons of green steel with an investment of up to $3 billion. The significance of this project is paramount, as it will produce steel for the automotive sector, the electrical tools sector, and also the wind turbine sector,” said Dr. Ali al Sunaidi, OPAZ Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ).
He noted that the authority is currently in discussions with buyers in European and Asian markets.
Vulcan Group Senior Adviser Khalid al Jashmi shared that the project will use natural gas in the first phase, pending the availability and supply of green hydrogen to the site.
“As the project progresses, the plant will gradually reduce its reliance on natural gas by 50% each year until it becomes entirely green,” al Jashmi said.
He also mentioned 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% compared to regular steel plants.
“Vulcan Green Steel stands hand in hand with Oman as we collectively strive for a cleaner and greener industrial economy. Our green pledge, made just weeks ago, is not a mere proclamation. 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,” said Vice Chairman of Vulcan Green Steel, Venkatesh Jindal.
Scheduled for completion by 2026 and with production starting 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. This project is estimated to achieve a significant 12 mtpa in CO2 savings.
This project is a joint venture between Vulcan Green Energy (VGE) and OQAE, who have signed an agreement to explore the joint development of Integrated Energy Valley (IEV), the first of its kind project in GCC.