Oman: Oman’s journey towards becoming a global hub for green hydrogen production has reached a significant milestone with Hydrogen Oman (Hydrom), a subsidiary of Energy Development Oman (EDO), signing 3 agreements for the first green hydrogen blocks in the country.
These agreements, with a total investment value exceeding $20 billion, mark a crucial step in Oman’s commitment to renewable energy and sustainability.
During a recent event, Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals and Chairman of the Board of Directors of Hydrom, signed the agreements with winning bidders from Denmark, the USA, the UK, Kuwait, Singapore, and the Sultanate of Oman.
The contracts were awarded to consortia such as Amnah, Green Energy Oman (GEO), and BP Oman, showcasing international collaboration in the pursuit of green hydrogen production.
The three projects are expected to yield an impressive total production capacity of half a million tonnes of green hydrogen per annum. This will be accomplished through the utilization of more than 12 GW of installed renewable energy capacity across three sites in the Al Wusta Governorate, covering an area of 320 square kilometers.
One of the awarded blocks, Z1-01, will be developed by a consortium comprising Copenhagen Infrastructure Partners (CIP), Blue Power Partners (BPP), and Al Khadra, a part of Oman’s Hind Bahwan Group.
This project aims to generate approximately 200 KTPA of green hydrogen, utilizing 4.5 GW of installed renewable energy capacity for green steel plants in the Port of Duqm.
Another project, in collaboration with BP Oman, will focus on the development of green hydrogen for ammonia production and export. With 3.5 GW of installed renewables capacity in Block Z1-03, it is anticipated to produce 150 KTPA of green hydrogen annually.
The third project, signed with the consortium of Green Energy Oman (GEO), involves the development of green hydrogen and its derivatives. This consortium comprises Oman’s integrated Energy Company OQ, Oman Shell, Kuwait’s energy investor EnerTech (ETC), InterContinental Energy (ICE), and Golden Wellspring Wealth for Trading (GWWT).
It is projected to produce up to 150 KTPA of green hydrogen from 4 GW of installed renewables capacity in Block Z1-04.
Steps to ensure success
To facilitate these projects, Hydrom secured land rights through a head-usufruct agreement signed by the Ministry of Housing and Urban Planning, the Ministry of Energy and Minerals, and Hydrom. The agreement enables the allocation of land for renewable energy and clean hydrogen initiatives.
In addition, Hydrom announced the establishment of an Advisory Board responsible for overseeing the development of common utilities infrastructure in coordination with lead developers, national utility operators, and international developers of green hydrogen infrastructure.
To support the pipeline development for green hydrogen, Hydrom signed a Memorandum of Understanding (MoU) with OQ Gas Networks (OQGN), the exclusive operator and owner of Oman’s natural gas transportation system.
Furthermore, Energy Development Oman (EDO) signed a Research and Development MoU with Siemens Energy, fostering collaboration in the fields of green hydrogen technology, innovation, and expertise exchange.
Potential for Oman’s Green Hydrogen Sector
Al Aufi expressed confidence in Oman’s potential to excel in the green hydrogen sector and establish a resilient presence in the years to come.
The government’s focus on renewable energy development and the allocation of land for such projects further solidify Oman’s stable investment environment and its commitment to a greener future.
Eng. Mazin Al Lamki, CEO of EDO, emphasized the strategic advantage Oman holds in the green hydrogen industry. With abundant renewable resources, existing infrastructure, and international partnerships, Oman is well-positioned to drive local and global energy security and economic diversification.
The development of the green hydrogen economy aligns with EDO’s objective to generate investment opportunities and maximize financial returns in Oman’s energy sector.
Oman’s proactive measures in the energy sector, including the aim to achieve zero carbon emissions by 2050, the formulation of a national strategy for green hydrogen, and the review of regulatory frameworks, showcase the country’s commitment to sustainable development and its aspiration to lead the way in green energy transformation projects.