Posted on 30 Jan 2026

Meranti Green Steel today announced that it has secured full offtake coverage for the first module of its green Hot Briquetted Iron (HBI) production from its new iron plant in the Duqm Special Economic Zone, marking a key commercial milestone for the project.

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: 1.0 million tonnes per annum to Thyssenkrupp Materials Trading, 0.25 million tonnes per annum to INTERFER Edelstahl & INTERFER Austria. The remaining 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.

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.

These long-term offtake arrangements underpin the commercial viability of Meranti’s 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.

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.

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. Meranti’s approach supports decarbonization across both integrated and electric arc furnace steelmaking routes, while maintaining supply reliability, flexibility, and cost efficiency.

Meranti Green Steel (MGS), headquartered in Singapore, is decarbonizing the steel industry through a value chain model that decouples iron making from steelmaking. By producing certified green Hot Briquetted Iron (HBI) in Oman and completing green steel production in Thailand, MGS delivers high quality steel products with low carbon intensity, while maintaining cost competitiveness.

For its HBI production, MGS is initially using a natural gas-green hydrogen mix and will transition to full green hydrogen usage over time. This transition model allows MGS to deliver products that are both commercially viable and environmentally sustainable, combining cost efficiency with optimized low-carbon outcomes and full transparency. Supplying HBI from Oman not only to its Thailand steel plant but also to external offtakers, MGS is establishing itself as a strategic partner to European and global traders and steelmakers.

Led by experienced steel industry experts, MGS combines decades of operational knowledge together with a clear vision for innovation and green steel leadership. Through partnerships with leading global players across the iron- and steel supply chain including raw materials, technology, processes, and logistics, MGS is building a robust business model focused on safe and timely delivery and effective operations. We are not only producing HBI and green steel, we are helping to create a world where development and nature can be in balance.

Source:Fuel Cells Works

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