Green Hydrogen Fuels Meranti Green Steel’s 2.5 Mtpa HBI Project in Duqm

Ever wondered how green hydrogen could shake up the steel world? Well, in the Duqm Special Economic Zone in Oman, Singapore’s Meranti Green Steel is cooking up something big: a 2.5 million tonnes per annum hot briquetted iron (HBI) plant blending natural gas with green hydrogen. They’re eyeing a Final Investment Decision by mid-2026, but it’s more than just raw materials—it’s about flipping the script on steel’s carbon legacy.

Project Overview

Meranti Green Steel has locked down its spot in Duqm SEZAD and signed a conditional gas deal with Integrated Gas Company (IGC). At first, they’ll ride the existing natural gas pipelines, then slowly swap in green hydrogen until it makes up roughly 85% of the mix by 2029. The goal? Drive emissions below 200 kg of CO₂ per tonne—right in line with global industrial decarbonization targets.

Why Duqm?

Duqm isn’t just pretty scenery; it’s a strategic hub. With its deep-water port, robust infrastructure and direct access to Oman’s natural gas, the area is primed for big industrial plays. On top of that, Duqm SEZAD’s regulations roll out the red carpet for energy and manufacturing. Shipping HBI to Asia or Europe? Piece of cake, thanks to sea lanes that link straight to Thailand’s planned green steel mill and European markets hungry for low-carbon feedstock.

Tech Spotlight: HBI & EAF Steelmaking

Here’s where the tech gets cool: they use a direct reduction route to turn iron ore into hot briquetted iron. At first, it’s a fine-tuned blend of natural gas and green hydrogen powering the reaction. As more hydrogen production ramps up, gas usage dips. Once you’ve got your HBI, you feed it into an electric arc furnace running on renewable power—no blast furnace carbon gut-punches here.

Strategic Partnerships

No plant stands alone. That’s why Meranti’s teamed up with IGC for conditional gas supply and is talking with KfW IPEX Bank for project financing. Nail down the cash, clear the FID hurdle by mid-2026, and you’re full steam ahead into engineering and construction.

Impacts on the Green Hydrogen Landscape

This isn’t just another steel plant—it’s a blueprint for oil-and-gas-rich nations to pivot towards green hydrogen exports. Linking large-scale HBI output with robust hydrogen infrastructure paves the way for Oman’s 1.5 million tonnes of green hydrogen capacity by 2030. European steelmakers score a fresh source of low-carbon feedstock, and Meranti’s Thailand site gets a direct pipeline of eco-friendly flat steel.

Challenges Ahead

Of course, it’s not all smooth sailing. The timeline hinges on scaling up green hydrogen fast—think electrolyser rollouts, reliable power and supportive policy. And let’s not forget the price tag: green steel still carries a premium over conventional options. But with carbon pricing on the rise, that gap should tighten.

Looking Ahead

By mid-2026, we’ll know if Meranti Green Steel flips the switch on its 2.5 mtpa HBI plant in Duqm. If they do, expect a seismic shift: industrial hubs powered by green hydrogen, shipping decarbonized materials around the globe. It’s a bold bet on industrial decarbonization, and if it pays off, steel’s carbon footprint might never be the same.