Oman Launches Green Ship Recycling Project to Drive Sustainability and Economic Growth
Oman is preparing to embark on one of its most ambitious ventures in sustainable development with the announcement of a groundbreaking green ship recycling project. The initiative, unveiled by the Ministry of Transport, Communications, and Information Technology (MTCIT), underscores the sultanate’s commitment to balancing environmental responsibility with industrial growth while strengthening its global standing as a leader in green maritime innovation.
At the heart of the project is the establishment of the Middle East’s first integrated green ship recycling facility, a landmark development that reflects Oman’s 2050 net-zero emissions target and broader climate ambitions. The facility will be built in the Khatmat Malaha area of North Batinah in collaboration with Green Wheel Recycling Middle East. According to a senior ministry official, a concession agreement is expected to be signed later this month, which will set the stage for construction to begin.
Ship recycling has long been a contentious issue within the maritime industry. Around the world, traditional shipbreaking methods have often been criticized for their hazardous practices, which expose workers to dangerous conditions and cause severe environmental harm through the release of pollutants into the sea and soil. By contrast, green ship recycling is designed to dismantle end-of-life vessels in a controlled, safe, and environmentally responsible manner. It follows stringent international regulations, ensuring that both ecological and human health risks are minimized.
The Omani project aims to set new benchmarks in this field. Once fully operational, the facility will include a modern integrated port and the capacity to dismantle and recycle more than 70 ships per year. The scale of the operation is significant, with the first phase alone expected to generate approximately two million tonnes of high-quality, low-carbon steel annually. This steel will be fed back into the industrial supply chain, reducing reliance on carbon-intensive production methods and advancing the principles of the circular economy.
“This project not only supports Oman’s 2050 net-zero strategy but also positions the sultanate as a regional hub for innovative green solutions in shipping,” the ministry official told Muscat Daily. “It addresses the serious environmental and human health challenges posed by traditional shipbreaking practices around the world and provides a model for sustainable growth.”
The timing of the project could not be more opportune. International shipping companies are facing increasing pressure to comply with global environmental frameworks such as the EU Ship Recycling Regulation and the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. These frameworks mandate safer, cleaner, and more transparent ship disposal methods, leaving many fleets in need of compliant facilities. With its advanced standards and strategic location along major global shipping routes, Oman is positioning itself as an attractive solution for owners seeking responsible end-of-life vessel recycling.
Beyond the environmental benefits, the green ship recycling project is expected to deliver substantial economic dividends. Government projections suggest that around 2,000 direct and indirect jobs will be created during the facility’s construction and operational phases. The initiative will also stimulate growth in secondary sectors such as eco-friendly container manufacturing and logistics. The production of low-carbon steel, in particular, is poised to strengthen Oman’s domestic iron and steel industries, enhancing non-oil GDP and supporting the nation’s diversification agenda under Oman Vision 2040.
Analysts point out that the project could transform Oman into a regional hub for both ship recycling and green materials. The global demand for recycled steel is rising as industries move to cut emissions and align with environmental, social, and governance (ESG) goals. By producing millions of tonnes of low-carbon steel annually, the facility will not only meet local demand but also position Oman as a potential exporter of sustainable industrial materials.
The strategic location of the facility in North Batinah also adds to its appeal. Situated close to international shipping lanes, the site offers easy access for vessels operating in the Gulf, the Arabian Sea, and beyond. This accessibility, combined with Oman’s stable political environment and growing investment in logistics, could make the country a preferred choice for shipowners seeking sustainable recycling solutions.
But Oman’s ambitions extend beyond the recycling facility itself. As part of its broader maritime sustainability strategy, MTCIT has revealed plans to make Oman the first Gulf nation to provide ships with access to electricity and green fuel while docked at its ports. This initiative, often referred to as “cold ironing,” allows vessels to shut down their engines while berthed and instead draw clean power from the port. The result is a significant reduction in greenhouse gas emissions, air pollution, and fuel consumption, further aligning Oman’s ports with global sustainability standards.
Industry experts note that this dual-pronged approach—combining ship recycling with green port infrastructure—could give Oman a competitive advantage in the maritime sector. “What Oman is doing is not just about compliance; it’s about leadership,” said one regional maritime analyst. “By integrating recycling, renewable energy, and port electrification, the country is creating an ecosystem that supports shipping companies in meeting their environmental obligations while also fostering industrial and economic growth.”
The project also resonates with Oman’s broader economic vision. Under Oman Vision 2040, the government has prioritized diversification, sustainability, and innovation as pillars of national development. By investing in industries that align with the global transition to a low-carbon economy, Oman is not only reducing its dependence on oil revenues but also ensuring long-term competitiveness in a changing world.
Challenges remain, of course. Large-scale green recycling projects require significant investment, strict adherence to international standards, and ongoing monitoring to ensure environmental safeguards are upheld. Building local expertise and training a skilled workforce will be essential to the project’s success. However, officials appear confident that these hurdles can be overcome with effective collaboration between government entities, private investors, and international partners.
As construction preparations advance, the announcement has already generated considerable interest in the global maritime community. For shipping companies navigating the complexities of decarbonization and regulatory compliance, Oman’s initiative represents a practical and sustainable solution. For local communities, it promises new opportunities for employment, skills development, and participation in an emerging green economy.
In many ways, the green ship recycling project symbolises a turning point for Oman. It reflects the country’s willingness to embrace innovation, address global challenges, and position itself at the forefront of sustainable maritime practices. At the same time, it demonstrates how environmental responsibility and economic progress can go hand in hand, providing a blueprint for other nations in the region.
If successful, the facility at Khatmat Malaha will not only change the way ships are recycled in the Middle East but also help shape the future of the global maritime industry. For Oman, it marks a bold step toward a cleaner, greener, and more resilient future.
Author: shipping inbox
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