Japan-based steelmaker Kobe Steel has announced that it has signed a memorandum of understanding with Japan-based Mitsui and Oman’s Public Authority for Special Economic Zones and Free Zones (OPAZ) to cooperate on a low-carbon iron project to commercialize the manufacture and sale of direct reduced iron (DRI) in Oman.
The project aims to produce five million mt of DRI with a future expansion plan under study.
In the project, natural gas will be used as a reducing agent, while replacement of natural gas by hydrogen and a combination with carbon capture, utilization and storage will be considered to further reduce carbon emissions.
Kobe Steel aims to achieve carbon neutrality in its production processes by 2050.
