Oman-based Amnah Energy has signed a Memorandum of Understanding with Meranti Green Steel to support Oman’s ambition to develop green, hard-to-abate industries. The partnership aims to supply green hydrogen to Meranti’s upcoming low-carbon iron project in the Special Economic Zone at Al Duqm. The agreement aligns with Amnah’s commitment to reserve part of its hydrogen output for local industrial development, particularly green steel production, which is central to Oman’s decarbonisation plans.

The collaboration is seen as a major boost to Oman’s efforts to attract and localise energy-intensive industries that can benefit from the large-scale green hydrogen expected to be available in Al Duqm from around 2030. The Amnah Energy consortium, comprising Copenhagen Infrastructure Partners, Blue Power Partners and Al Khadra of the Hind Bahwan Group, has been allocated the 320 square kilometre land block Z1-01 in Al Duqm. The consortium is developing a project capable of producing 200,000 tonnes of green hydrogen annually, powered by approximately 4.5 GW of renewable energy. The concession was awarded under Oman’s first public auction round for integrated hydrogen projects.

Strategic partnership for low-carbon Iron and HBI production

Singapore-based Meranti plans to develop a 2.5 million tonnes per annum Hot Briquetted Iron plant at Al Duqm. The company announced that the MoU will enable both sides to work on a hydrogen supply and offtake solution tailored to long-term, low-carbon industrial production. According to Meranti, the shared objective is to design a reliable and competitive energy solution that supports a phased decarbonisation strategy and contributes to Oman’s broader hydrogen ecosystem.

Andrew Fang, VP for Projects and Sustainability at Meranti Green Steel, said the partnership marks an important step in using green hydrogen to produce low-carbon HBI. He stressed that progress on both supply and industrial demand is essential for building scale and certainty in the emerging hydrogen economy.

Emily Sykes, Director at CIP’s Energy Transition Fund, noted that the collaboration reflects Amnah’s commitment to enabling Oman’s vision for large-scale hydrogen production. She emphasised the project’s potential to link renewable resources with heavy industry, accelerate the global energy transition and position Oman as a long-term hub for sustainable industrial activity.

Meranti added that the proposed offtake arrangement will align with Oman’s hydrogen infrastructure framework overseen by Hydrom, OQ Gas Networks and other national utilities. By pairing guaranteed hydrogen supply with committed industrial demand, the partnership helps address synchronisation challenges in new hydrogen markets and supports the production of cost-competitive, low-carbon iron for global export.

Source: 

https://fuelcellsworks.com/2025/12/15/green-hydrogen/amnah-energy-to-supply-green-hydrogen-to-oman-steel-project