Singapore's Meranti to set up green steel project in Duqm

24/08/2025 04:48 AST

Singapore-based Meranti Green Steel has announced the launch of its green iron project in the Special Economic Zone at Duqm, with plans to produce low-emission direct reduced iron (DRI) and hot briquetted iron (HBI) as part of the company's global drive to decarbonise iron and steelmaking.

The Duqm project forms a key pillar of Meranti's green steel strategy. The company aims to make a final investment decision (FID) on the project by mid-2026, with construction to commence immediately afterwards. Commissioning of the facility is scheduled for mid-2029, according to a statement published on Meranti's website.

Meranti stated that the project will utilise a natural gas/green hydrogen mix, in line with Oman's energy transition plan. Over time, the company intends to increase its reliance on green hydrogen to up to 85%, cutting carbon dioxide emissions per tonne of steel to below 200kg. Discussions with potential green hydrogen suppliers are already under way, the company noted.

'Meranti considers Oman the ideal location for this project due to its competitive energy resources, including cost-effective natural gas and a rapidly developing green hydrogen ecosystem. The Special Economic Zone at Duqm offers strong infrastructure for the plant, with industrial land, deep-water port access, and streamlined regulatory frameworks that support fast-track development and global distribution,' the company said.

'Oman's geographical position also allows cost-efficient shipping to Meranti's steel plant in Thailand, as well as to European offtakers seeking low-emission HBI, reducing logistics costs and overall emissions,' it added.

The company further confirmed that it has secured a conditional gas allocation from Oman's Integrated Gas Company (IGC) and is in talks with international financing partners, including KfW IPEX.

The Duqm green iron project is expected to play a pivotal role in Meranti's integrated green steel value chain, supplying sustainable raw materials for its Thailand steel plant and helping to meet rising demand for HBI in Europe. The project will support Meranti's ambition to become a global leader in green steel.

'As the project advances, Meranti is committed to being an active partner in Oman's local community. In addition to production, the company will focus on forging long-term partnerships with local stakeholders, including universities and technical colleges. Meranti aims to grow its business while contributing to Oman's wider economic and social development,' the company noted.

Meranti Green Steel positions itself as a pioneer in redefining the steel industry through sustainability, quality, and innovation. The company says it is on course to produce Southeast Asia's greenest certified steel, minimising emissions while ensuring accessibility, commercial viability, and global compliance. By harnessing advanced technology and strong partnerships, Meranti Green Steel seeks to set new benchmarks in sustainable steelmaking.

Muscat Daily