Kobe Steel, Mitsui Partnered to Set Up New ‘Green’ Metallics Plant

SEATTLE (Scrap Monster): Japanese Kobe Steel and Mitsui & Company has reached an agreement with Oman's Public Authority for Special Economic Zones and Free Zones (Opaz) towards setting up a low carbon dioxide iron metallic project at Duqm Special Economic Zone (SEZ).

As per the deal, the two companies will focus on commercializing the manufacture and sale of direct reduced iron (DRI) produced using Kobe Steel’s Midrex Process. The signing of the deal is expected to boost steel industry’s concerted efforts to reduce carbon dioxide emissions in order to address climate change. Incidentally, Kobe Steel aims to achieve carbon neutrality in its production process by 2050.

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Kobe Steel and Mitsui has entered into a land reservation agreement with the Port of Duqm Company (PODC) - the operator of the port. The companies have also initiated negotiations with the country’s Ministry of Energy and Minerals on the terms and conditions of natural gas supply to the plant. The two companies have also decided to move forward with the feasibility study.

The plant will have capacity to produce 5 million tonnes of DRI, which could be further expanded in future.