The Jindal Shadeed Group has announced plans to invest over $3 billion in the construction of a green steel plant in Oman. This facility will specialize in the production of high-strength automotive products for customers in the Middle East, Europe, and Japan.
Jindal Shadeed Iron and Steel LLC's CEO, Harssha Shetty, has announced that the company has obtained the necessary authorizations to acquire land for a green hydrogen-ready project that is projected to process 5 million tons of steel annually. The plant in Duqm, Oman is anticipated to be finished by 2026.
He stated in an interview on Saturday that the company will eventually assess the ideal combination of debt and equity to maximize shareholder value and reduce the cost of capital.
As people become more and more dedicated to achieving net-zero objectives, steel producers around the world are investing heavily in reducing their carbon footprint. It is widely believed that green hydrogen, which is created using water and renewable energy, will be a major factor in the decarbonization of heavy industry and is expected to experience significant growth in the coming years.
The energy market in Europe has been affected by increasing costs, which has had a negative impact on production and has caused a shift in focus towards alternative energy sources.
Shetty announced that the company had secured a long-term natural gas supply agreement with the government of Oman to meet the energy needs of their integrated steel complex. He also noted that investing in green hydrogen-ready technologies would allow them to transition away from fossil fuel-based energy.
Jindal Shadeed's new plant is expected to produce 30-40% of its output for consumption within Oman and the Gulf Cooperation Council region, with the rest being exported to meet the growing demand for green steel in the international market. Shetty stated that the plant will provide for the automotive, wind turbine, and consumer goods industries in Europe, Japan, and other countries.
It is anticipated that the demand for flat steel products in the GCC region will increase to over 11 million tons by 2030, which is a significant increase from the 7.3 tons that was recorded last year, according to Shetty. Jindal Shadeed has a steel plant in Oman that produces 2.4 million tons each year.
Jindal Shadeed is a subsidiary of the OP Jindal Group, a conglomerate worth $35 billion. This group is headed by Savitri Jindal, who is currently the wealthiest woman in Asia with a net worth of $14 billion, as reported by the Bloomberg Billionaires Index. The group also includes Naveen Jindal's Jindal Steel & Power Ltd. and Sajjan Jindal's JSW Steel Ltd.
As a leading independent research provider, TradeAlgo keeps you connected from anywhere.