Muscat: To develop a low-CO2 iron metallics project in the Special Economic Zone at Duqm (Sezad), the Public Authority for Special Economic Zones and Free Zones (Opaz) signed an agreement with Kobe Steel, a major steel manufacturer in Japan, and Mitsui & Co.
At the ceremony, Kobe Steel and Mitsui also penned a memorandum of understanding (MoU) with the Centralised Utilities Company (Marafiq) to supply the project with water and power, as well as a land reservation agreement with the Port of Duqm Company.
The MoUs were signed by Masahiro Motoyuki, Executive Officer and Head of Engineering Business at Kobe Steel, and Tetsuya Fukuda, Executive Managing Officer and Chief Operating Officer of Mineral and Metal Resources Business Unit at Mitsui & Co., on behalf of Kobe Steel and Mitsui. Dr. Ali bin Masoud Al Sunaidy, Chairman of Opaz, represented the Public Authority for Special Economic Zones and Free Zones (Opaz).
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Reggy Vermeulen, CEO of Duqm Port, signed the land reservation agreement, while Eng. Abdullah Al Hashimi, Managing Director of Marafiq, signed the MoU.
Ibtisam bint Ahmed Al Farooji, the Undersecretary of the Ministry of Commerce, Industry, and Investment Promotion, YAMAMOTO Jota, the Japanese Ambassador in Muscat, as well as other dignitaries and company representatives, attended the event.
Through the MIDREX® Process, the project is anticipated to annually produce five million metric tonnes of direct reduced iron (DRI). Kobe Steel and Mitsui seek to offer a short-term decarbonization solution to the steelmaking sector by utilising technologically and commercially viable production techniques. The project’s long-term goal is to significantly reduce carbon emissions using techniques including switching from natural gas to hydrogen and carbon capture, use, and storage while also increasing production capacity.
Additionally, Kobe Steel and Mitsui will carry out a thorough business analysis in order to start producing low-CO2 iron metallics by 2027. The product will be sold to companies in Asia, such as Kobe Steel, as well as other international markets like Europe.
Dr. Ali bin Masoud Al Sunaidy, Chairman of the Public Authority for Special Economic Zones and Free Zones, commented on the occasion, saying that “bringing this unique project to the Special Economic Zone at Duqm marks a valuable addition to the already-existing list 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 went on to say that the project is a fantastic contribution to the Sultanate of Oman’s steel manufacturing sector and that it would increase in-country value (ICV) by helping regional small and medium-sized businesses (SMEs) and creating employment opportunities.
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The Sultanate of Oman, on the other hand, is a country rich in natural gas reserves required for producing DRI and is also one of the world’s outstanding locations for renewable energy, making it a highly suitable area for competitive green hydrogen, according to Tetsuya Fukuda, Chief Operating Officer of the Mineral and Metal Resources Business Unit at Mitsui. Additionally, Mitsui has a solid business relationship with the Sultanate of Oman thanks to its ongoing LNG projects, IPP operations, and upstream oil and gas assets.
“With a combination of our steelmaking experience, our key technologies such as the MIDREX Process, and the collective strength of Mitsui operating global businesses in the natural resources and energy fields, Kobe and Mitsui will continue to contribute to the reduction of GHG emissions within the steelmaking industry with hopes of achieving a carbon-neutral society,” said Masahiro Motoyuki, Executive Officer and Head of Engineering Business at Kobe Steel.
We are thrilled that Mitsui & Co. and Kobe Steel are building a low-CO2 iron metallics project at Port of Duqm, said Reggy Vermeulen, CEO of Port of Duqm. While Kobe Steel is a globally renowned Japanese leading steelmaking company, and its MIDREX® technology for the low-carbon DRI process is widely considered to be the future of steel making, Mitsui is a Japanese trading and investment company with a global presence, and their upcoming project at Port of Duqm immensely strengthens their position in Oman. The project has the potential to generate a sizable amount of jobs in Duqm and is anticipated to bring in a large amount of foreign direct investment.