Jindal Shadeed Group announced that it has selected the Special Economic Zone at Duqm (SEZAD) in the Sultanate of Oman to establish a manufacturing facility. Slated to be the largest of its kind within the zone to produce green steel, the factory will also utilize renewable energy sources in its manufacturing operations.
This announcement was made at a ceremony that included the signing of a Memorandum of Understanding and a land allocation agreement. The event was held under the auspices of His Excellency Dr. Ali bin Masoud Al Sunaidy, Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ) and included the presence of a number of high-ranking government and private sector officials as well as prominent local and international media.
The Special Economic Zone at Duqm (SEZAD) is the largest economic zone in the Middle East, with an area of 2,000 square kilometers. This strategic project is being built over an area estimated at approximately 2 square kilometers in the concession zone at the Port of Duqm with an investment value estimated at 3 billion USD.
The MoU was signed by Eng. Ahmed bin Hassan al Dheeb, Deputy Chairman of the Public Authority for Special Economic Zones and Free Zones, and Harssha Shetty, CEO of Jindal Shadeed Group. The land reservation agreement was signed by the Jindal Shadeed Group and Mr. Reggy Vermeulen, Chief Executive Officer of Port of Duqm.
In line with its development efforts, Jindal Shadeed Group also signed an MoU with the centralized utility provider, Marafiq, to provide the plant with the utilities necessary to operate the project such as water services, seawater for cooling purposes, and other Marafiq services. The agreement was signed by Talal Al Lawati, Vice President of Commercial Operations, Marafiq.
Eng. Ahmed bin Hassan Al Dheeb expressed his delight in partnering with steel production expert, Jindal Shadeed Group, to develop its manufacturing facility. He reaffirmed that a project of this caliber would be an added value to the heavy industries cluster in the Special Economic Zone at Duqm and would play a vital role in the development of Duqm as a key industrial hub.
He added, “The signing of the MoU and agreement is a testament to the importance of the Special Economic Zone at Duqm and further reinstates its position as a leading and attractive destination for large strategic projects that will benefit from renewable energy and green hydrogen. The availability of solar energy and wind resources throughout the year will encourage more investments in green industries and renewable energy projects in the Sultanate of Oman in general, and Duqm in particular. The Sultanate of Oman is making commendable efforts toward using cleaner sources of energy to meet industrial requirements. The efforts are in line with the priorities of Oman Vision 2040 to use alternative energy and sustainable natural resources. The project also serves the comprehensive national strategy which focuses on reducing emissions and achieving carbon neutrality.”
Harssha Shetty said, “Jindal Shadeed Group is investing more than 3 billion USD to develop this mega steel project in Duqm, and we have already obtained the necessary approvals to secure the land for our Green Hydrogen ready steel project. Our goal is to produce 5 million metric tons of green steel on an annual basis that will create over $800M per annum in-country value addition.
The plant will supply high-quality steel products to automobile, wind energy, and consumer durables sector amongst others.
There is a booming demand for green steel from ESG-conscious customers around the world, especially in Europe and Asia, who have already committed significant reductions in Scope 3 emissions by 2030.