Oman’s Public Authority for Special Economic Zones and Free Zones (OPAZ) has 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 carbon dioxide iron metallics project in the Special Economic Zone at Duqm (SEZAD).

Kobe Steel and Mitsui also 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 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 utilisation 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.