Kobe Steel to build direct reduction iron plant in Oman

On April 10, Japanese steelmaker Kobe Steel (Kobelco) announced that it had signed a memorandum of understanding with the Oman Special Economic Zone and Free Zone Public Authority (OPAZ) in collaboration with Japanese trade and investment company Mitsui to jointly develop a low-carbon direct reduced iron project.

The project will be built in Oman’s Duqm Special Economic Zone (SEZAD) and is expected to produce 5 million tons of direct reduced iron (DRI) per year using the MIDREX process. MIDREX is an innovative ironmaking process that uses iron ore and natural gas or hydrogen to produce direct reduced iron. Compared with traditional blast furnaces that mainly use coal, production using the MIDREX process can reduce carbon dioxide emissions by up to 40%.

The project temporarily uses natural gas as a reducing agent, and will consider replacing natural gas with hydrogen in the future, and combining carbon capture, utilization and storage technology (CCUS) to further reduce carbon dioxide emissions.

Before the project starts, Kobe Steel and Mitsui & Co. will conduct detailed business studies and plan to start production by 2027. The products will then be supplied to Asian companies including Kobe Steel and markets such as Europe.