Arab Steel Summit
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Arab Steel Summit

Oman: Vale signs an agreement to establish an integrated green steel industrial complex in Duqm

Vale Company signed a land reservation agreement with the Port of Duqm Company to establish an integrated green iron industrial complex in the Special Economic Zone at Duqm on an area of 6.78 km. It will include three plants described in ore concentration, green briquetting, and reduced iron.

Vale also signed a memorandum of understanding with Marafiq Company, intending to provide the complex with electricity, energy and other services by Marafiq as a provider of infrastructure services in the Special Economic Zone at Duqm.

His Excellency Eng. Ahmed bin Hassan Al-Dheeb, Vice President of the Public Authority for Special Economic Zones and Free Zones, said that this project is expected to produce raw materials for the iron industries. Highlighting that all parties in this project are keen to promote clean energy and green hydrogen use in the project facilities, which are planned to be established in the Duqm port.

For his part, the CEO of Vale clarified that this agreement constitutes an important station for the company to enhance its role in ensuring the sustainability of the mining sector. In addition, it looks forward to benefiting from the promising prospects and opportunities embodied in the integrated industrial complex project and activating its desired contribution to support the sector’s orientation towards adopting sustainable and green operational processes.

For his part, the CEO of the Port of Duqm Company indicated that this project chose the port of Duqm due to its strategic location on the international trade route and its proximity to numerous regional markets. It is also scheduled to be a future centre for green hydrogen and its derivative products, expressing his hope that the port will stand out as one of the primary destinations for green steel manufacturing.

The CEO of Marafiq confirmed that the company would provide services for the new project, including industrial water and other related requirements.

Abbas bin Irshad Al Lawati, Executive Director of the Invest in Oman, Lounge, stated that the Lounge is a unified window to provide integrated services to investors and display investment opportunities whose size exceeds one million Omani riyals in cooperation with relevant government and private agencies according to international best practices. In addition, it is concerned with serving and caring for investors within an integrated system interested in investing in the Sultanate of Oman.

Through this project, Vale aims to reduce its net third-range gas emissions by 15 per cent by 2035, reduce its absolute first and second-range gas emissions by 33 per cent by 2030 and reach net zero emissions by 2050.

The Industrial Complex project was designed to produce reduced iron and other steel products and supply them to the local and international markets while reducing the carbon dioxide emissions level by a large percentage, as it reduces the use of natural gas to produce iron carbon dioxide emissions by 60 per cent compared to the production of pig iron by merging furnaces, smelting and basic oxygen furnaces. Renewable energy and hydrogen fuel will be adopted instead of natural gas.


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