Oman’s Public Authority for Special Economic Zones and Free Zones has signed an agreement with Japanese steel manufacturer Kobe Steel and Mitsui & Co., to develop low-carbon iron metallic project in the Special Economic Zone at Duqm (SEZAD).
The project is expected to produce five million tonnes of Direct Reduced Iron (DRI) annually. By using technically and commercially proven production methods, Kobe Steel and Mitsui aim to provide a near-term decarbonisation solution to the steel making industry. In the long run, the project targets further decarbonisation through measures such as replacement of natural gas with hydrogen and carbon capture, as well as utilization and storage, with a goal to expand production capacity.
Further, Kobe Steel and Mitsui will conduct the detailed business study, with an aim to commence low carbon iron metallics production by 2027. The product will be supplied to businesses in Asian and other global markets such as Europe.