VGS is another venture by the Jindal Steel
Group to expedite Oman's economic diversification strategy
MUSCAT: In
a strategic alliance with the Sultanate of Oman, Vulcan Green Steel (VGS), part
of the Jindal Steel Group, is embarking on an ambitious journey to establish a
groundbreaking low CO2 emission steel project within the Duqm Special Economic
Zone. Using a combination of natural gas and renewable electricity, this
venture promises to revolutionize sustainable steel production not only in Oman
but also on a global scale.
VGS has secured a 30-year land lease agreement
with the Public Authority for Special Economic Zones and Free Zones (OPAZ) to
develop and operate a state-of-the-art integrated steel mill complex on a
sprawling 2-million m2 site at the Port of Duqm. This complex serves as a
testament to VGS's commitment to decarbonizing a traditionally carbon-intensive
industry. It adopts a comprehensive approach, intending to harness green
electricity and green hydrogen throughout the supply chain, resulting in an
impressive 85% reduction in carbon emissions compared to conventional steel
production, which emits up to 2 tonnes of CO2 per tonne of steel.
Beyond the significant economic and
environmental advantages this landmark undertaking presents, the integrated
steel complex will play a pivotal role in generating both direct and indirect
employment opportunities during construction and operation. At its peak
construction phase, more than 8,000 workers will be engaged on-site,
underscoring the magnitude of this endeavour.
When operational, VGS is poised to attract
local and international investments into a thriving downstream industry, driven
by the availability of high-quality, yet cost-competitive, green steel products
in Duqm. Potential investors in this sector include industry leaders in
electric vehicle (EV) manufacturing, wind energy, and white goods, while small
and medium-sized enterprises (SMEs) in the Duqm area are anticipated to benefit
from numerous business opportunities.
Sustainability lies at the heart of VGS's Duqm
investment, not only through its use of zero-carbon energy resources but also
by maximizing the creation of value for Oman and its local economy as per Oman
Vision 2040.
As a world-renowned producer of steel, VGS is
another venture by the Jindal Steel Group to expedite Oman's economic
diversification strategy. The company is also committed to promoting
localization, fostering In-Country Value (ICV), nurturing the skills of young
Omanis, and nurturing a novel industrial ecosystem centered around sustainable
steel production.
In essence, the collaboration between VGS and
the Omani government aligns seamlessly with Oman Vision 2040, the nation's
visionary roadmap for a diversified, sustainable, and economically thriving
future. This partnership represents a paradigm shift in industrial investment
in Oman, built on the pillars of technological innovation, economic
diversification, and unwavering sustainability principles.
