In a significant development, Vulcan Steel, an investment entity affiliated with Naveen Jindal, the key promoter of India's Jindal Steel and Power Limited (JSPL), recently conducted a groundbreaking ceremony for a groundbreaking 5 million metric tons per year green steel mill in Oman. The event took place on Tuesday, November 28, and marks a crucial step toward enhancing sustainable steel production.
Situated in a Special Economic Zone, the ambitious project is slated for completion by 2027. This venture holds particular significance as it follows JSPL's strategic move in 2020 to deleverage its balance sheet by selling the assets of its Oman operation, Jindal Shaheed Iron and Steel Company Limited, to Vulcan Steel for an estimated value of $1 billion.
While the details surrounding the project's execution point to Vulcan Steel taking the lead, it's worth noting that Jindal Shaheed Iron and Steel Company Limited is expected to play a role in its implementation as well.
This groundbreaking initiative is set to establish one of the largest green steel mills globally. Initially powered by natural gas for energy, the facility will transition to green hydrogen, aiming to produce high-value steel catering to the needs of the automobile, wind turbine, and domestic consumer durable goods manufacturing sectors across Europe and Japan.
The project is structured to encompass two production lines, each with a capacity of 2.5 million metric tons per year. This includes elements such as direct reduction iron (DRI), an electric arc furnace (EAF), and a hot strip mill. With production scheduled to commence in 2026 and 2027, the facility is poised to make a substantial impact on the steel industry's green transformation.
It's noteworthy that Jindal Shaheed Iron and Steel Company Limited already operates a 2.5 million metric ton steel mill in the Sohar region of Oman, further solidifying JSPL's commitment to contributing to Oman's steel production landscape.
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