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L&T secures engineering contract for Oman green iron project

Prime Highlights

  • Larsen & Toubro has won the FEED contract for Meranti Green Steel’s 2.5 million tonnes per annum green iron project in Oman.
  • The project will use renewable energy and green hydrogen to produce lower-carbon iron products for global steel markets.

Key Facts

  • Larsen & Toubro (L&T) is an Indian multinational specialising in engineering, construction, manufacturing and infrastructure projects.
  • Meranti Green Steel is developing the Duqm project as part of Oman’s strategy to become a regional hub for green hydrogen and sustainable steel production.

Background

Singapore-based Meranti Green Steel has awarded Indian engineering and construction firm Larsen & Toubro (L&T) a front-end engineering and design (FEED) contract worth 2.5 million tonnes annually for a green iron project in Duqm, Oman.

The contract marks an important step in the development of one of the Middle East’s largest green steel projects as it moves towards a final investment decision. Following a competitive bidding procedure involving multiple multinational companies, Meranti Green Steel chose L&T as its project delivery partner for the FEED phase.

Under the agreement, L&T’s Minerals & Metals business will prepare the detailed engineering design, plant configuration, process integration, project execution strategy, cost estimates and implementation schedule for the Direct Reduced Iron (DRI) and Hot Briquetted Iron (HBI) facility.

The FEED stage is expected to improve project economics, reduce execution risks and establish the technical foundation for the construction of the green HBI plant.

Additionally, Bedeschi, an Italian technical firm, has been chosen by Meranti Green Steel to provide the material handling systems for the DRI and HBI complex. The company will supply the machinery that is required to handle, store, and process the raw materials and finished goods within the factory.

Further, Marsh, which is an insurance broker on an international scale, has been appointed as the insurance advisor for the project.

Lower-carbon iron products will be produced at the facility using green hydrogen and renewable energy. Once operational, it is expected to supply sustainable raw materials to regional and international steelmakers while supporting Oman’s plans to expand its green hydrogen, green steel and industrial sectors.