RIYADH: Omani steel giant Jindal Shadeed Group intends to set up a $3-billion factory to produce “green steel” using renewable energy in the Special Economic Zone at the Port of Duqm on the country’s southeastern coast, SEZAD. The new operation aims to produce five million tons of green steel a year, creating over $800 million per annum in value addition, it said in a press release. The company, a part of the $22-billion Jindal Group, will supply high-quality steel products to sectors such as automotive, wind energy and consumer durables. It sees a booming demand for green steel from environmental, social, and corporate governance-conscious customers around the world, especially in Europe and Asia, who have already committed to a significant reduction in Scope 3 emissions by 2030, according to Group CEO Harssha Shetty. An MoU was signed by Shetty and Ahmed bin Hassan Al Dheeb, deputy chairman of the Public Authority for Special Economic Zones and Free Zones, while a land reservation agreement for the site for the project was also signed between the Group and Reggy Vermeulen, the port’s CEO. The Group, which claims to be Oman’s largest steel producer, 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 and seawater for cooling purposes. Commenting on the agreements, Al Dheeb said: “The signing of the MoU and agreement is a testament to the importance of SEZAD and emphasizes its position as a leading and attractive destination for large strategic projects that will benefit from renewable energy and green hydrogen.” He said the availability of solar energy and wind resources throughout the year will encourage more investments in green industries and renewable energy projects in Duqm. Oman is making efforts toward using cleaner sources of energy to meet industrial requirements. Al Dheeb said 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 to reduce emissions and achieve carbon neutrality,” he added. Shetty revealed that Jindal Shadeed Group has already obtained the necessary approvals to secure the land for our green hydrogen-ready steel project. Reggy Vermeulen added: “This green steel project aligns very well with the port’s economic diversification and reduction in reliance on the oil and gas sector. It will not only attract foreign investment, but also provide work opportunities for local talent.”