Oman’s Public Authority for Special Economic Zones and Free Zones (Opaz) has signed a Memorandum of Understanding (MOU) with the leading Japanese steelmaker Kobe Steel for developing low carbon iron metallics project in the Sultanate.
The project, which will be developed in Special Economic Zone at Duqm (Sezad), 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 steelmaking 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.
Kobe Steel and Mitsui also signed a land reservation agreement with the Port of Duqm Company and inked another MOU with the Centralised Utilities Company (Marafiq), to supply the project with power and water.
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.
 In the long run, the project will aim for further decarbonisation through measures such as the replacement of natural gas with hydrogen and carbon capture, utilisation and storage, to expand production capacity as well.