Vulcan Steel is drumming up funds for green steel plant: India’s Vulcan Steel is currently in talks with undisclosed export credit agencies (ECAs) to seal USD 2.5 bn in funding for its green steel plant in Oman’s port city of Duqm, The Economic Times reports, citing sources it says have knowledge of the matter. The plant will reportedly be built through funds from non-bank sources, with the ECAs helping fund the procurement of imported capital goods required for the plant.

What we know: The USD 3 bn green steel plant is expected to have a production capacity of 5 mn tons per annum once completed in 2026, company officials said last year. The plant’s output will be primarily directed towards export to the Middle East, Europe, and Japan, with some 30-40% earmarked for consumption in Oman and the wider GCC region, they added. It is set to be a part of Jindal Shadeed Iron and Steel (JSPL), which was acquired by Vulcan Steel in 2020 for USD 1 bn in enterprise value. JSPL has decided to divest from its Oman arm and assets it had acquired for USD 464 mn in 2010.

Vulcan is spending big as it crosses fingers on demand: Vulcan Steel plans to pour in over USD 3 bn in the project, a senior official at the company said in an earlier interview with The Economic Times. The plant is being modeled on Europe’s steel markets, which are currently transitioning to low-emissions raw materials under a decarbonization push.

REMEMBER- Green steel is gaining traction in the region: Brazilian mining firm Vale finalized a land reservation agreement with the Port of Duqm Company for three production plants in May that will source materials essential for Oman’s low-carbon steel making industry. India’s Jindal Steel Power said it is exploring the potential of setting up a green steel production plant in the SCZone last month. The UAE’s Emirates Steel Arkan plans to partner with two Japanese firms to look at setting up an iron ore processing facility in Abu Dhabi that could be partly powered by green hydrogen, due to begin production in 2H 2025. Saudi Arabia is reportedly looking to invest some USD 266 bn in a host of green hydrogen-focused areas — including the creation of industrial centers for green steel and aluminum.

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