Vulcan breaks ground on its Duqm green steel plant: Oman’s Public Authority for Special Economic Zones and FreeZones (Opaz) and Vulcan Green Steel commenced construction on the country’s first green steel plant in the Duqm Special Economic Zone, Oman Observer reports. The USD 3 bn plant will have a capacity of 5 mn metric tons annually. Opaz is currently in discussions with buyers in Europe and Asia.

More about the project: The plant will be powered by natural gas during the first phase pending the availability of green hydrogen supply, but will remain low-carbon since its emissions are 40% less than conventional steel plants, the news outlet notes. It will then reduce gas reliance by 50% after the first year until it becomes fully green. It is estimated to eventually have 85% fewer emissions than the current global average.

The timeline: The plant will be completed by 2026 and start production by 2027, Oman Observer writes. Vulcan has also partnered with OQ's renewables unit OQ Alternative Energy to explore developing an Integrated Energy Valley to provide green energy to meet the growing decarbonization needs of industries in Oman.

We knew this was coming: Opaz signed three agreements with Vulcan Green Steel — a subsidiary of Jindal Shadeed — last month to establish the green steel factory in Duqm. Vulcan was in talks with undisclosed credit agencies back in July to secure USD 2.5 mn for the plant.

What they said: "The significance of this project is paramount as it will produce steel for the automotive sector, electrical tools sector, and also the wind turbine sector," said Opaz chairman Ali bin Masoud al Sunaidy.

REMEMBER- Green steel is gaining traction in the region: The MENA region is well-positioned to become a global hub for green steel and iron production given its large potential for renewables, which are needed to produce green hydrogen, as well as an established iron market. Masdar and Emirates Steel Arkan partnered earlier this week to develop a pilot green hydrogen plant to decarbonize the UAE’s steel sector. Emirates Steel Arkan also partnered with JFE Steel and Itochu Corporation to produce low-emission iron material for international export last year.

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