The Amnah Energy consortium has signed a Memorandum of Understanding (MoU) with Meranti Green Steel to collaborate on supplying clean energy to a low-carbon iron project in Oman's Al Duqm Special Economic Zone. The agreement marks a significant boost to Oman's efforts to localize industries that will benefit from the expected availability of large volumes of green hydrogen in Al Duqm from around 2030.

The Amnah consortium, comprising Copenhagen Infrastructure Partners (CIP), Blue Power Partners and Al Khadra (Hind Bahwan Group), is developing a gigawatt-scale hydrogen project in Al Duqm. The consortium has been awarded the 320 km² land block Z1-01 in Al Duqm to produce 200,000 tonnes of green hydrogen per year, powered by around 4.5 GW of renewable energy. The concession was secured as part of Oman's first public auction round for integrated hydrogen projects.

Meranti Green Steel's Industrial Development Plans

Singapore-based Meranti Green Steel plans to develop a 2.5 million tonnes-per-annum Hot Briquetted Iron (HBI) plant in Al Duqm. The company announced on Friday that the two parties will collaborate on a green hydrogen supply-offtake solution. Meranti noted in its announcement that “both parties share the objective of designing the most reliable and competitive solution and are strongly aligned on the vision for long-term partnership and decarbonization of the steel industry.”

The collaboration advances Meranti's goal of producing cost-competitive, low-carbon HBI for global markets. Andrew Fang, VP Projects & Sustainability at Meranti Green Steel, commented: “Our partnership with Amnah marks an important step in leveraging green hydrogen supply for the production of low-carbon HBI. By progressing both sides of the value chain, we aim to create the scale and certainty required to advance our phased decarbonization strategy and support Oman's growing green hydrogen ecosystem.”

Strategic Partnership for Industrial Decarbonization

Emily Sykes, Director, CIP Energy Transition Fund, explained the broader vision behind the collaboration: “CIP and the Amnah project are committed to enabling Oman's vision for large-scale green hydrogen production. The collaboration with Meranti is an important step towards building an integrated value chain that connects world-class renewable resources with industrial decarbonization at scale.

By supplying green hydrogen for low-carbon HBI and ultimately steel production, we aim to accelerate the global energy transition, create significant economic opportunities and employment, and demonstrate how Oman can become a cornerstone of sustainable industry for decades to come.”

The partnership represents Amnah Energy's commitment to allocate part of its green hydrogen production to hard-to-abate industrial investments, most notably green steel, in Oman. By integrating green hydrogen production with committed, long-term onshore industrial offtake, the partnership between Meranti and Amnah Energy helps overcome the challenge of synchronizing new hydrogen supply with emerging industrial demand.

Alignment with National Infrastructure Framework

The proposed offtake solution will align with Oman's green hydrogen infrastructure framework, which is overseen by Hydrom (the orchestrator of the hydrogen sector), OQ Gas Networks (OQGN) and other national utilities. This alignment ensures the partnership integrates seamlessly with the country's broader hydrogen development strategy and existing energy infrastructure.

The collaboration represents a significant development in Oman's industrial strategy, connecting renewable energy production with steel manufacturing to support both environmental goals and economic growth. The partnership demonstrates how large-scale renewable energy projects can be directly linked to industrial applications, creating a comprehensive value chain for the utilization of green hydrogen in the region.

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