Meranti Green Steel (MGS) has secured full offtake coverage for the first module of its green Hot Briquetted Iron (HBI) production from its upcoming iron plant in Duqm Special Economic Zone, Oman, marking a major commercial milestone for the project.
The long-term offtake agreements cover the entire planned capacity of Module 1, totalling 2.5 million tonnes per annum (MTPA). The volumes have been allocated among four strategic partners, with 1.0 MTPA committed to Thyssenkrupp Materials Trading, 0.25 MTPA to INTERFER Edelstahl & INTERFER Austria, while the remaining capacity will be supplied to Glencore and Meranti’s new steel plant in Rayong, Thailand, supporting the ramp-up of its green hot rolled coil production.
The agreements also include provisions for additional offtake volumes for a potential second HBI module in Oman, subject to the fulfilment of certain conditions, enabling future capacity expansion.
Under the geographical distribution framework, Thyssenkrupp Materials Trading will serve markets in Germany, Belgium, and the Netherlands, INTERFER Edelstahl & INTERFER Austria will focus on Italy and Austria, while Glencore will cover other international markets.
These long-term offtake arrangements significantly strengthen the commercial viability of Meranti’s green HBI project and support progress toward the project’s Final Investment Decision (FID), targeted for mid-2026. The agreements outline key commercial terms, including pricing mechanisms, product specifications, delivery timelines, and contract durations.
Meranti’s green HBI will be produced in Oman using a blend of natural gas and green hydrogen, providing a low-carbon iron unit suitable for Electric Arc Furnace (EAF) steelmaking. Oman’s competitive energy pricing, expanding renewable power capacity, strong logistics infrastructure, and supportive regulatory framework position the country as a strategic hub for scalable and cost-competitive low-carbon iron production.
Through a diversified offtake strategy involving global commodity traders and industrial customers, Meranti aims to ensure broad market access to low-CO₂ iron units, including for smaller EAF steel producers. The approach supports decarbonization across both integrated and EAF-based steelmaking routes, while maintaining supply reliability, operational flexibility, and cost efficiency.
Headquartered in Singapore, Meranti Green Steel is pioneering a decoupled ironmaking and steelmaking value chain, producing certified green HBI in Oman and completing green steel manufacturing in Thailand. The company is initially deploying a natural gas–green hydrogen mix and plans a gradual transition toward full green hydrogen usage, balancing commercial feasibility with long-term sustainability goals.
By supplying green HBI to both its Thailand steel operations and global offtakers, Meranti is positioning itself as a strategic partner to European and international steelmakers and traders, accelerating the global transition toward low-carbon steel production.
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