Oman’s Vulcan Steel and Volkswagen AG have signed a Memorandum of Understanding (MoU) to partner on producing low-carbon steel, a key element of Volkswagen’s green steel strategy.
This partnership will see up to 300,000 tons of Europe’s annual steel requirements covered by Vulcan Green Steel, significantly contributing to Volkswagen’s steel needs from 2027 onwards.
The fully vertically integrated production of flat steel in Oman will span the entire process from mined iron ore, through the generation of green energy and production of green hydrogen, to the secondary metallurgy of the finished steel. Oman’s high wind speeds and strong, continuous solar radiation provide ideal conditions for generating green power from wind and solar energy, which is essential for producing low-carbon steel using green hydrogen.
Vulcan Green Steel’s low-carbon steel is expected to reduce carbon emissions in steel production by 70pct in the future. This partnership is part of Volkswagen Group’s broader initiative to expand the use of green steel in its production processes.
In addition to collaborating with Vulcan Green Steel, Volkswagen has partnered with Salzgitter AG since 2022 and holds a stake in Swedish green steel manufacturer H2 Green Steel through its subsidiary Scania.
Vulcan Green Steel is part of the Jindal Steel Group, a diversified industrial conglomerate with operations in steel, iron ore mining, and energy across India, Oman, Africa, and Australia. Starting in 2027, Vulcan Green Steel will produce automotive grades and other high-strength steel grades in Oman. Initially, natural gas will be used in the Duqm operations, but these will transition to green energy, cutting carbon emissions by 70pct once the switch is complete. The facility, currently under construction, is expected to come online in 2026 with a production capacity of 5 mln tons per year of green steel.
