Singapore-based steelmaker Meranti Green Steel (MGS) announced it will invest in a green steel plant in Oman's Duqm Special Economic Zone to produce low-carbon direct reduced iron (DRI) and hot-briquetted iron (HBI). This project is central to its global decarbonization strategy. The company expects to make a final investment decision and begin construction in mid-2026, with the plant operational by mid-2029.

In line with Oman's energy transition plan, initial production will utilize a blend of natural gas and green hydrogen, with the hydrogen content increasing to 85%, reducing carbon emissions to below 200 kilograms per ton of steel. 

MGS emphasized Oman's low-cost natural gas and rapidly developing hydrogen ecosystem, along with Duqm's industrial land, deep water port, and efficient regulatory framework, as advantages for the plant. The project will provide sustainable feedstock for MGS's steel mill in Thailand and meet demand for low-emission HBI in the European market.

The company has received conditional gas supply support from Oman's Integrated Gas Company (IGC) and is in discussions with international financing partners. 

MGS said that in the future, it will cooperate with local universities and technical colleges to promote skills training and community development, and is committed to helping Oman's economic and energy transformation while improving its business and moving towards its goal of becoming a global leader in green steel.