Jindal Steel Duqm to start Oman-based 5 MTPA green steel plant in 2028

Jindal Steel Duqm, a part of Naveen Jindal Group, aims to start operations at its upcoming 5 million tonnes per annum (MTPA) hydrogen-enabled green steel complex at the Special Economic Zone in Duqm (SEZAD) in Oman by 2028, a company executive said.

The plant is being developed in two phases at a total investment of approximately $3 billion (around Rs 25,000 crore), the official said.

Designed to be one of the world's most advanced hydrogen-ready steel facilities, it will initially run on natural gas but will be capable of switching to green hydrogen once the supply infrastructure matures.

The complex will consist of two Direct Reduced Iron (DRI) modules of 2.5 MTPA each. While the first unit will be operationalized by December 2028, the second unit is scheduled for commissioning by 2030. Both DRI units are engineered to be hydrogen-ready from day one.

According to a senior company executive, Jindal Steel Duqm has informed the Government of Oman that hydrogen will be injected into the DRI process as soon as regular supply is ready, and the equivalent amount of natural gas will be phased out. The company expects to start hydrogen injection by 2033, with 10-15 per cent hydrogen usage targeted by 2035.

The green hydrogen required for this transition is expected to come from multiple renewable energy and green hydrogen projects being developed in Duqm by the Government of Oman and private investors. These projects are likely to be operational by 2033, ensuring a domestic and sustainable supply source for the steel plant.

At the outset, the plant will produce Hot Briquetted Iron (HBI) and DRI with a low carbon footprint to cater to the growing demand for low-emission raw materials, particularly from steelmakers in Europe. The use of Electric Arc Furnace (EAF) technology in combination with the DRI route will allow for a more flexible and cleaner steel production model.

The Naveen Jindal Group had signed a Memorandum of Understanding (MoU) and land allocation agreement with the Government of Oman in 2022.