Meranti Green Steel secures full offtake for planned green iron project in Oman

Singapore-based Meranti Green Steel has announced that it has secured offtake agreements for the entire output of the first phase of its planned hot briquetted iron (HBI) plant in Oman, which will use a combination of natural gas and green hydrogen to convert iron ore into HBI.

The plant's annual production of one million tonnes will be supplied to Thyssenkrupp Materials Trading in Germany, Belgium, and the Netherlands, while an additional 250,000 tonnes will be allocated to Interfer in Italy and Austria. The remaining 1.25 million tonnes will be distributed between commodities trader Glencore and Meranti’s own planned electric arc furnace-based steel plant in Rayong, Thailand, though the specific distribution between the two has not been disclosed.

HBI can be processed into steel using electric arc furnaces, and Meranti is betting that direct shipping of HBI will be more cost-effective than importing raw materials like natural gas, renewable ammonia (for hydrogen production), and iron ore for direct reduction in Europe.

Meranti plans to make a final investment decision on the Omani project by mid-year, with the plant expected to start operations in 2029.

Last month, the company signed a memorandum of understanding with Amnah Energy, one of the first winners of the Omani government’s Hydrom auctions, to supply green hydrogen for the project.

Meranti previously indicated that it plans to start with a 15% green hydrogen blend in natural gas for direct iron reduction, aiming to increase this to 85% hydrogen by the 2040s, depending on global cost factors and CO2 prices.