Oman: Hydrom has signed two new agreements in Oman for green hydrogen projects. These agreements were awarded to ENGIE and POSCO-led consortium and the Hyport Duqum consortium, the winners of round 1 of the Oman green hydrogen auction process.
The signing took place at a special event organized by Hydrom, attended by senior officials from the public and private sectors.
With the latest agreements, Oman has now awarded a total of five large-scale green hydrogen projects, representing an investment of over USD 30 billion and a production capacity of 750 KTPA. The newly awarded projects signed with the POSCO-ENGIE consortium and Hyport Duqum are expected to exceed USD 10 billion in investment. Further, these projects will have a combined production capacity of 250 KTPA and utilize over 6.5 GW of renewable energy capacity.
The first agreement was signed with the POSCO-ENGIE consortium, which includes POSCO Holdings, MESCAT Middle East DMCC, Samsung Engineering Co. Ltd., Futuretech Energy Ventures, Korea East-West Power Co. Ltd., and Korea Southern Power Co. Ltd. The consortium plans to produce over 200 KTPA of green hydrogen by 2030, using 5.2 GW of wind and solar energy to produce and export ammonia.
The second project was signed with the consortium Hyport Duqum which consists of OQ Alternative Energy and DEME Concessions NV. They aim to produce more than 50 KTPA of green hydrogen by 2029 in the first phase of the project. This agreement follows the signing of commercial term sheets earlier in March 2023.
Auction Round 2 Announced
Hydrom also announced the launch of the second round of its green hydrogen auction process during the event. The company plans to award up to three land blocks in the Dhofar region during the second round by the first quarter of 2024. Interested companies can register through the Hydrom website.
HE Eng Salim bin Nasser Al-Aufi, Minister of Energy and Minerals, expressed his satisfaction with the new agreements and the launch of round 2 of the public auction. He emphasized Oman’s commitment to becoming a leading global player in the green hydrogen sector and achieving its energy transformation goals outlined in Oman Vision 2040 and the target of net-zero carbon emissions by 2050.
Furthermore, the CEO of Energy Development Oman SAOC, Eng Mazin Al Lamki praised Hydrom’s achievements during the round 1 auction process and expressed support for its vision. Moreover, Eng Abdulaziz Al Shidhani, Managing Director of Hydrom, highlighted the signing of these agreements as a reflection of Oman’s commitment to the growth of the green hydrogen sector and its leading position regionally and globally.
Other Signed Agreements
Moreover, in addition to these agreements, Hydrom signed three other agreements earlier this month with the consortia of Amnah, Green Energy Oman (GEO), and BP Oman, representing a total investment of over USD 20 billion. These contracts will result in a production capacity of half a million tons of green hydrogen per annum from more than 11.5 GW of installed renewable energy capacity.
Oman’s ambitious plan aims to produce over 1 MTPA of green hydrogen by 2030, increasing to 8 MTPA by 2050, with a cumulative investment value of USD 140 billion.
These agreements and projects signify Oman’s commitment to the green hydrogen sector and its ambitious goals for a sustainable energy future. With significant investments and partnerships, Oman is positioning itself as a key player in the global energy transition towards a low-carbon economy.