Amnah Pledges Green Hydrogen for Oman’s Steel Industry
Image Source: Lins de Vasconcellos
Omani Consortium Chooses Green Steel Over Exports
Amnah, the winning consortium for Oman’s first green hydrogen development project, has announced a significant shift in its strategy. Instead of exporting green hydrogen derivatives, they plan to utilize it domestically for the production of green steel in Oman.
This decision was revealed by Mark Geilenkirchen, Project CEO, at the recent Green Hydrogen Summit Oman. He emphasized Amnah’s commitment to using the green hydrogen within Oman, believing it will create a higher “In-Country Value” (ICV).
Green Hydrogen for Green Steel
Amnah’s green hydrogen, produced at their multi-billion dollar facility in Duqm, will directly support the creation of green steel or low-carbon alternatives like Hot Briquetted Iron (HBI) and Direct Reduced (DR) iron. This approach bypasses the traditional route of converting hydrogen into derivatives like ammonia for export.
Boost for Oman’s Green Ambitions
Amnah’s commitment is a major win for Oman’s vision of establishing Duqm as a hub for green industries. The consortium’s decision aligns perfectly with Oman’s goal of becoming carbon neutral by 2050. It also paves the way for attracting international steel and mining companies to Duqm, which is already seeing interest from companies like Vale, Mitsui & Co, and Vulcan Green Steel.
Strategic Move for Green Steel
Amnah views its pivot towards green steel as a strategic response to the current challenges faced by the green hydrogen and ammonia industries. They believe the transition to green steel is not only commercially viable but also aligns with evolving regulations, like the EU’s Carbon Border Adjustment Mechanism (CBAM). Green steel production will cater to the growing demand for sustainable materials in sectors like electric vehicle and wind turbine manufacturing.
Investing in the Future
Amnah anticipates investing around $6-7 billion in the first phase of their project, targeting a green hydrogen output of 210,000 tonnes. This project signifies a significant step towards Oman’s green future and positions the country as a leader in the green steel industry.
Source: ZAWYA
