The Public Authority for Special Economic Zones and Free Zones (OPAZ), Oman signed a Memorandum of Understanding (MoU) with Kobe Steel, a leading Japanese steel manufacturer, and Mitsui & Co. Ltd., a global trading investment company, to develop low CO2 iron metallics project in the Special Economic Zone at Duqm (SEZAD).
Moreover, Kobe Steel and Mitsui signed a land reservation agreement with Port of Duqm Company and inked another MoU with the Centralized Utilities Company (Marafiq), to supply the project with power and water.
The MoUs and agreements were signed by Dr. Ali Masoud Al Sunaidy, Chairman of OPAZ, Masahiro Motoyuki, Executive Officer and Head of Engineering Business at Kobe Steel, Tetsuya Fukuda, Executive Managing Officer and Chief Operating Officer of Mineral and Metal Resources Business Unit at Mitsui & Co., Reggy Vermeulen, CEO of Duqm Port Company and Eng. Abdullah Mohammed Al Hashimi, Managing Director of Marafiq.
The project is expected to produce five million tonnes of Direct Reduced Iron (DRI) annually through the MIDREX Process. By using technically and commercially proven production methods, Kobe Steel and Mitsui aim to provide a near-term decarbonisation solution to the steelmaking industry. In the long run, the project targets further decarbonisation through measures such as replacement of natural gas with hydrogen and carbon capture, as well as utilization and storage, with a goal to expand production capacity.
Further, Kobe Steel and Mitsui will conduct the detailed business study, with an aim to commence low CO2 iron metallics production by 2027. The product will be supplied to businesses in Asian and other global markets such as Europe.
Speaking on the occasion, Dr. Ali Masoud Al Sunaidy, Chairman of the Public Authority for Special Economic Zones and Free Zones, saud that bringing this unique project to the Special Economic Zone at Duqm marks a valuable addition to the current list of development of remarkable international metal and mineral projects and green energy projects in the Zone and will attract other related and supporting industries and businesses.
Al Sunaidy added that the project is a great addition to the steelmaking industry in the Sultanate of Oman. It will also enhance In-Country Value (ICV) by supporting local small and medium enterprises (SMEs) and offering job openings for Omani youth.
