Singapore-headquartered Meranti Green Steel has announced that it has achieved full offtake coverage for the first module of its green hot briquetted iron (HBI) project in the Sultanate of Oman, thus advancing the project toward a planned final investment decision in mid-2026.
The green HBI production at its new iron plant in the Duqm Special Economic Zone marks a major commercial milestone for the project, said the company in a statement.
The offtake agreements cover Meranti’s full planned module 1 capacity of 2.5 million tonnes of HBI per annum, allocated across four core partners: 1 million tonnes per annum to Thyssenkrupp Materials Trading, 0.25 million tonnes per annum to Interfer Edelstahl & Interfer Austria. The balance will be supplied to Glencore and to Meranti’s new steel plant in Rayong, Thailand, to support the ramp-up of its green hot rolled coil production.
The offtake agreements also include allocation of additional volumes among the four offtakers for a potential second HBI module in Oman, subject to certain conditions being met.
Produced in Oman using natural gas and a portion of green hydrogen, Meranti’s green HBI provides steelmakers with a transportable low-CO₂ iron unit suitable for Electric Arc Furnace (EAF) steelmaking.
Oman’s competitive energy costs, access to renewable power, local raw material processing, and supportive regulatory framework enable scalable, cost-competitive low-carbon iron production, it added.
The Singaporean group said the distribution among offtakers is structured as follows: Thyssenkrupp Materials Trading will focus on Germany, Belgium and the Netherlands; Interfer Edelstahl & Interfer Austria will focus on Italy and Austria; and Glencore will focus on other countries, it stated.
Meranti Green Steel said these long-term offtake arrangements underpin the commercial viability of its green HBI project in Oman and support further progress toward Final Investment Decision (FID) which is planned for mid-2026.
The offtake agreements include key commercial terms including pricing frameworks, product specifications, and delivery start and duration.
By supplying green HBI through a diversified offtake structure that includes global traders, MGS ensures broad market access to low-CO₂ iron units, also for smaller EAF producers.
A key renewable energy player, Meranti is helping decarbonise the steel industry through a value chain model that decouples iron making from steelmaking.
By producing certified green HBI in Oman and completing green steel production in Thailand, MGS delivers high quality steel products with low carbon intensity, while maintaining cost competitiveness, it added.-TradeArabia News Service
