Meranti Green Steel has secured full offtake coverage for the first module of its green hot briquetted iron (HBI) plant in the Duqm Special Economic Zone, marking a key commercial milestone for the project.
The long-term offtake agreements cover the entire planned capacity of 2.5 mln tons per year. Volumes include 1 mln tons per year allocated to Thyssenkrupp Materials Trading, 0.25 mln tons per year to Interfer Edelstahl and Interfer Austria, with the remaining tonnage supplied to Glencore and Meranti’s upcoming steel plant in Rayong, Thailand to support green hot-rolled coil production.
The agreements also include provisions for additional volumes from a potential second HBI module in Oman, subject to certain conditions. Thyssenkrupp Materials Trading will serve markets in Germany, Belgium and the Netherlands, while Interfer will focus on Italy and Austria. Glencore will distribute volumes to other international markets.
These offtake arrangements underpin the project’s commercial viability and support progress toward a final investment decision (FID), targeted for mid-2026. The contracts include pricing frameworks, product specifications and delivery timelines.
Meranti’s green HBI will be produced in Oman using natural gas and a portion of green hydrogen, offering a low-CO2 iron unit suitable for electric arc furnace (EAF) steelmaking. The project benefits from Oman’s competitive energy costs, access to renewable power and supportive regulatory environment, enabling scalable and cost-competitive low-carbon iron production.
Meranti Green Steel is building of a 2.5 mln tons per annum HBI plant in the Special Economic Zone at Duqm (SEZAD), with commissioning targeted for mid-2029. The company has indicated plans for a potential second HBI module, which would double the total capacity to 5 mln tons per annum.
