Singapore-based steelmaker Meranti Green Steel (MGS) has unveiled a major investment in the Duqm Special Economic Zone, where the company will build a green iron facility producing low-emission direct reduced iron (DRI) and hot briquetted iron (HBI). The initiative forms a core part of Meranti’s global green steel decarbonization strategy.
The company plans to make its final investment decision by mid-2026, with construction starting soon after. Commissioning of the facility is scheduled for mid-2029.
Transition to green hydrogen in ironmaking
Aligned with Oman’s Energy Transition Plan, Meranti will initially use a natural gas/green hydrogen mix, with the goal of integrating up to 85 percent green hydrogen in its process. This will reduce carbon emissions per ton of steel to below 200 kg, a major step toward sustainable steel production.
Strategic location and energy resources
Meranti highlights Oman’s competitive energy resources, such as low-cost natural gas and its growing green hydrogen ecosystem, as key reasons for choosing the country.
The Duqm Special Economic Zone provides ready industrial land, access to a deep-water port, streamlined regulatory frameworks, proximity to key markets in Thailand and Europe. This strategic location will help reduce both logistics costs and emissions.
Strengthening green steel value chains
The Oman facility will serve as a crucial link in Meranti’s integrated green steel value chain, providing sustainable raw materials for its Thailand steel plant and meeting Europe’s growing demand for HBI.