Low-CO2 steel: Volkswagen cooperates with Vulcan Green Steel
Low-CO2 steel: Volkswagen cooperates with Vulcan Green Steel
Renewable energy for green steel from Oman - from 2027 for VW. Picture: Volkswagen AG
Volkswagen and the Jindal subsidiary Vulcan Green Steel have signed a Memorandum of Understanding (MoU) for green steel. From 2027, the car manufacturer intends to source low-CO2 flat steel from the Vulcan Green Steel plant currently under construction in Oman.
Vulcan Green Steel (VGS) is part of the Indian Jindal Group with operations in the steel, ore mining and energy sectors and activities in India, Oman, Africa and Australia. The company is planning to produce automotive grades and other high-strength steels at the Vulcan Green Steel plant in Oman from 2027. The fully integrated process with direct reduction at the Duqm site will initially be operated with natural gas before switching completely to green hydrogen, so that CO2 savings of 70% can be realised. The plant is currently in the construction phase and is scheduled to go into operation in 2026. VGS is strategically located in the Al Wusta region in the Sultanate of Oman and is building a greenfield steel complex with an initial capacity of 3 million tonnes per year in phase 1. The Duqm site benefits from exceptional sun and wind conditions, making it an ideal choice. VGS is a sister company of Jindal Shadeed Iron and Steel (JSIS), which is also based in Oman. The co-operation is part of a series of initiatives by the Volkswagen Group to expand the use of green steel in production. In addition to the cooperation with Vulcan Green Steel, there has been a cooperation with Salzgitter AG since 2022. Through its subsidiary Scania, the Volkswagen Group also has a stake in the Swedish green steel manufacturer H2 Green Steel. Source: Volkswagen / Vulcan Green Steel