Oman eyes green aluminium expansion with new projects in Duqm SEZ

Oman is planning three major low-carbon aluminium projects in the Special Economic Zone at Duqm (SEZAD), as part of its broader strategy to strengthen sustainable industrial development and diversify beyond traditional heavy industries. The initiative is being supported by the Public Authority for Special Economic Zones and Free Zones (OPAZ), with a focus on building a green aluminium production hub powered by cleaner energy sources.

The largest proposed project is a new aluminium smelter backed by CMOC Group Limited, with an annual production capacity of 530,000 tonnes. Estimated at OMR 2.4 billion, the project will use low-carbon technologies and include downstream production capabilities for aluminium billets and pre-cast slabs, adding around 620,000 tonnes per year of value-added output.

Two additional projects-the Geely Green Aluminium Project and the Pearl Green Iron and Aluminium Project-are also under early-stage development with regional partners. All three initiatives are designed to use green hydrogen and other low-emission energy sources expected to become available in the region by around 2030, aligning with Oman’s long-term hydrogen strategy.

These developments support SEZAD’s wider vision of becoming a regional centre for sustainable metals manufacturing. By integrating renewable energy, hydrogen infrastructure, and industrial production, Oman aims to attract global investors, reduce carbon intensity in heavy industry, and strengthen its position as a low-carbon industrial hub in the Middle East.

Three green-aluminium projects in Duqm anchored to hydrogen supply arriving around 2030 is exactly the kind of long-dated industrial bet that European CBAM buyers will start pricing in soon - low-carbon primary metal is genuinely scarce. Our energy-transition and supply-chain-and-operations teams help clients evaluate green-aluminium offtake and investment opportunities against CBAM exposure and evolving embedded-emissions disclosure rules.