Located in Duqm’s Special Economic Zone (Sezad), the hot briquetted iron (HBI) plant is expected to transition to low-carbon iron production by starting with a natural gas and green hydrogen mix, before gradually ramping up to 85% green hydrogen.
With commissioning slated for 2029 and construction due to start immediately after FID, MGS has already locked in land at Duqm, secured a conditional gas allocation, and established a local entity to anchor the project.
A significant portion of the 2.5 million tonnes per year is earmarked for MGS’ planned green steel mill in Rayong, Thailand, which is set to become Southeast Asia’s first green flat steel plant.
By importing HBI as a feedstock, the Thai facility is expected to focus on electric arc furnace (EAF)-based steelmaking close to its end markets.
Furthermore, some of the output is being positioned for European offtakers.
“Oman’s location facilities cost-effective shipping to Meranti’s steel plant in Thailand and to European offtakers seeking low-emissions HBI. Thereby reducing logistics costs and emissions,” MGS explained.
Oman has been moving quickly to establish a global foothold in hydrogen. Through Hydrom, the Sultanate has already awarded eight large-scale projects in just two years, representing a potential output of around 1.2 million tonnes of green hydrogen annually.
By 2030, it aims to reach up to 1.5 million tonnes of production capacity, underpinning its ambition to become a leading supplier to both regional and international markets.
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