German green energy technology firm Hydrogen Rise has signed an agreement with Jindal Shadeed Iron & Steel and Sohar Port and Freezone to evaluate the development of the first green hydrogen plant at Suhar, which will decarbonise the steel production process at Jindal Shadeed’s steel manufacturing plant.
After conducting techno-economic feasibility studies, the first phase will include the operation of a 35MW electrolyser capacity by mid-2024, paired with a solar renewable energy plant. Following this first phase, an upscaling path to a potential 350MW electrolysis capacity will be evaluated.
Hydrogen Rise, based in Oman and Germany will develop, build and operate the green hydrogen facility at Suhar supplying green hydrogen to Jindal Shadeed’s steel manufacturing facility.
Jindal Shadeed’s expertise in steel production can see the company become an early pioneer in utilising innovative decarbonisation technologies and in substituting natural gas with green hydrogen in the steel manufacturing process to become a major producer in the fast-developing global market for green steel.
Olav Carlsen, CEO of Hydrogen Rise, Oman, said, “We are excited to work with Jindal Shadeed and Sohar Port and Freezone to evaluate the development of a step-wise scalable and bankable project for a very innovative decarbonisation process – from a starting electrolysis size of 35MW to a step-by-step ten-fold scaling of 350MW. This approach, plus the very cost competitive renewable energy production in Oman and the commitment to decarbonisation processes here in the country will give all partners a significant competitive edge in the developing global market for green steel. It is no doubt a step in the right direction as we look at ways to decarbonise industries in Oman and their dependency on gas. If successful, this mechanism can be rolled out to industrial zones across the country and around the world.” Sanjay Anand, Chief Operating Officer and Head of Jindal Shadeed Iron and Steel in Oman, said, “The range of products that are possible to be produced using this method has the potential to transform the steel industry in Oman. At Jindal Shadeed, we are very proud to adopt an environment-friendly approach to steel making and have some of the world’s lowest carbon intensity footprints.”
Mark Geilenkirchen, CEO of SOHAR Port and Freezone, said, “SOHAR is ideally-positioned to become a major exporter of green steel across the world and lead the way in facilitating the production, transportation and utilisation of clean hydrogen. This agreement is the first major step towards developing a viable alternative to gas, which will promote sustainable practices for all industries operating within SOHAR and attract new businesses to our clusters.”