Jindal Steel Orders Second Direct Reduction Plant in Oman to Boost DRI Production

Jindal Steel Advances Direct Reduction Plant Project in Oman

Jindal Steel Duqm, a subsidiary of Jindal Steel Group, has confirmed an order for a second direct reduction plant in Oman. The plant will utilize Danieli’s Zero-Reformer Energiron technology, designed for hydrogen-ready operations. This expansion follows the ongoing construction of the first Energiron DRI plant in Duqm, which is set to commission in 2026. With an expected annual capacity of 2.5 million tons, the new facility aims to significantly boost the production of direct reduced iron (DRI) with an impressive metallization rate of 94%.

The project represents a strategic move toward sustainable steel production, leveraging hot briquetted iron (HBI) for better storage and export options. Jindal Steel Duqm’s $3 billion initiative, launched in November 2023, aligns with the global shift toward cleaner steelmaking processes. The use of hydrogen-ready technology prepares the plant for future integration of low-carbon hydrogen fuels, reducing its environmental footprint.

Direct Reduction Plant’s Role in Oman’s Green Steel and Energy Transition

This expansion complements broader regional efforts to decarbonize steel production and industrial energy use. Brazilian mining giant Vale recently signed an MOU with OQ Alternative Energy to develop renewable energy projects in Oman. These initiatives aim to power Vale’s enrichment plant in Sohar and support the emerging Green Metallic Mega Hub in Duqm. Meanwhile, Oman is also developing the Middle East’s first eco-friendly ship recycling facility, expected to produce 2 million tons of low-carbon steel annually.

These developments position Oman as a growing hub for sustainable metals production and recycling in the Middle East. As a result, the synergy between Jindal Steel’s direct reduction plants and renewable energy investments will accelerate the transition toward greener industrial operations in the region.

SuperMetalPrice Commentary:

Jindal Steel’s order for a second hydrogen-ready direct reduction plant marks a key milestone in the decarbonization of the steel industry. The plant’s advanced Energiron technology and substantial 2.5 million tons capacity position Oman as a critical player in clean steel production. Combined with regional renewable energy projects, this signals a decisive move toward sustainable metals manufacturing. Market watchers should expect increased focus on hydrogen-ready DRI plants as a vital bridge to net-zero steelmaking globally.