Naveen Jindal's privately owned company Vulcan Steel is in talks with export credit agencies (ECAs) from several nations to get $2.5 billion in funding for its future green steel project in Oman. The individuals mentioned above stated that all money for the plant's construction will come from non-bank sources. An earlier interview with a top executive from the group revealed that the corporation ultimately intends to invest more than $3 billion in the Duqm-based project.
The capital products for the facility, which will be primarily imported from abroad in Oman, will be purchased with the support of the ECAs. Typically, ECAs support export by financing purchases made by overseas consumers from their home nation. The factory, which is anticipated to be operational by 2027, will be able to produce 5 million tonnes annually. The Jindal Shadeed Iron and Steel LLC, which Vulcan Steel acquired in 2020, will include it.
In order to achieve its decarbonization objectives, Europe supports lower emission raw materials, hence the project has been done with a focus on the steel markets there. Green steel is one of the top alternatives for industrial organisations to reduce their carbon footprint, thus Vulcan Steel is relying on the demand potential for it.
Although it has identical qualities to ordinary steel, green steel is manufactured without the use of fossil fuels, leaving a smaller carbon impact. At the moment, it is not accessible on an industrial scale. Businesses around the world, particularly in industrialised nations, are vying for technological advancement and mass production of green steel. Once its under-construction factory is operational by 2025, Swedish company H2 Green Steel will have established itself as the world's first significant producer of green steel.
For an estimated $1 billion in enterprise value, Vulcan Steel purchased Jindal Shaded Iron and Steel LLC from JSPL. In order to deleverage its balance sheet and concentrate on India's primary steel industry, JSPL made the decision to sell the asset in 2020. In the Oman asset, which it had purchased for $464 million in 2010, JSPL maintained a 99.9% share. The only integrated steelworks in Oman are now operated by Jindal Shadeed. The proposed 5 mtpa green steel mill will be the second integrated steelworks in the country of the Gulf once it is finished.
