Vulcan Steel, a Mauritius-based company, is seeking $2.5 billion to finance its green steel project in Oman. The project will be located in the Special Economic Zone at Duqm (SEZAD) and is estimated to cost a total of $3 billion.
The project aims to establish a 5 million tonnes per annum (mtpa) green steel plant. It will utilize hydrogen-based direct reduced iron (DRI) technology, which is known for its lower emissions compared to traditional steelmaking methods.
Vulcan Steel is currently engaged in discussions with various potential investors, including sovereign wealth funds and private equity firms. The company has set a target to complete the funding round by the end of 2023.
The green steel project in Oman is part of a global trend where similar initiatives are being developed. With the increasing global demand for steel, there is mounting pressure on the industry to minimize its environmental impact. Green steel projects, like Vulcan Steel’s, are seen as significant advancements in addressing this challenge.
