Kobe Steel, in partnership with Mitsui, is embarking on a groundbreaking low CO2 iron metallics project in Oman. The project is set to target the increasing demand for Direct Reduced Iron (DRI) processes and is aiming to launch production by 2027.
This ambitious engineering revamp could potentially generate net sales of ¥250bn by fiscal 2030, with products contributing to emissions reduction reaching up to ¥550bn by the same year. The company, which celebrates its 125th anniversary next year, is also focusing on building an ammonia supply chain and acquiring equipment through winning a long-term decarbonisation power source auction.
DRI is a process that involves removing oxygen from iron ore or other iron-bearing materials without melting, using carbon monoxide and hydrogen as reducing agents. Kobe Steel and Mitsui are collaborating on the low CO2 iron metallics project in the Special Economic Zone at Duqm, Oman, with a plan to produce five million tonnes of DRI through the MIDREX process.
By leveraging proven production methods, the partners aim to offer a near-term decarbonisation solution to the steelmaking industry. Additionally, they are looking towards further decarbonisation initiatives such as replacing natural gas with hydrogen and implementing carbon capture, utilization, and storage (CCUS) to expand production capacity.
The Sultanate of Oman’s abundant natural gas reserves and ideal conditions for renewable energy make it a prime location for competitive green hydrogen production. Mitsui’s existing business relationships in Oman, including oil & gas investments and LNG projects, further solidify the trust and collaboration in this innovative low CO2 iron metallics project.
