The latest report from the Institute for Energy Economics and Financial Analysis (IEEFA) points out that Oman is poised to become a leader in the global green steel industry.

Oman already possesses a complete steel supply chain, from iron ore beneficiation to electric arc furnaces, making it competitive in the Middle East and North Africa. Furthermore, they plan to develop new ore beneficiation capacity.

In fact, direct reduced iron (DRI) based on natural gas has high emissions intensity and cannot produce green steel using natural gas. Without transitioning from natural gas to green hydrogen, new DRI projects will not be able to capture a green premium in the market.

However, Oman has significant renewable energy potential and has invested heavily in solar and wind power generation, sufficient to enable its transition to low-emission steel production and meet the growing demand for green steel products.

The country's goal is to achieve an annual production of 1 million to 1.5 million tons of green hydrogen by 2030, becoming a leading green hydrogen production hub.