Last Updated on January 3, 2024 by News Editor
Green hydrogen production has emerged as a game-changing solution in the quest for decarbonization and sustainable power. Oman’s Hydrom has recently announced the awarding of contracts worth $10 billion. The significance of these contracts cannot be overstated, as they entrust two consortia, Posco-Engie, and the Hyport Duqm, with the monumental responsibility of spearheading green hydrogen projects in Oman.
The agreement is signed to build two hydrogen projects that hold immense promise, driving innovation, job creation, and economic growth, while simultaneously reducing Oman’s dependence on traditional fossil fuels. Anticipated to generate an astounding annual production capacity of 250 kilotonnes, these contracts will leverage over 6.5 gigawatts of installed renewable energy capacity across multiple sites. According to ONA, the projects will be strategically situated in the Al Wusta province.
Oman’s Energy Transformation: Scaling Green Hydrogen Production
Oman’s rapid and determined efforts in announcing these new hydrogen projects underscore its commitment to solidifying its leading position in the global green hydrogen sector, aligned with its energy transformation strategy. As the largest non-OPEC oil producer in the Middle East, Oman has set ambitious goals, aiming to produce a minimum of one million tonnes of renewable hydrogen annually by 2030. This target will be further expanded, with plans to reach 3.75 million tonnes by 2040 and 8.5 million tonnes by 2050. In October, Hydrom marked a significant milestone, signifying Oman’s dedicated oversight of hydrogen projects within the country. Furthermore, Oman has identified two blocks in the southern port city of Duqm, along with an additional four blocks in Salalah, which will be tendered to foster the development of green hydrogen projects.
Engie and Posco: Green Ammonia Venture in Oman
French energy company Engie and South Korea’s Posco have joined in an exciting venture. The hydrogen produced by this collaboration will be converted into approximately 1.2 million tonnes of green ammonia each year, with a focus on exporting it. Operations for this project are anticipated to commence in 2030. This partnership marks a significant step in their shared dedication to hastening the global shift towards low-carbon energy. By combining their strengths and capitalizing on Oman’s remarkable renewable energy potential, Engie and Posco unlock new possibilities. Ultimately, this collaboration propels Engie towards its ambitious target of achieving a hydrogen capacity of 4 gigawatts by 2030, positioning them as a key player in the global energy arena.
$20 Billion Milestone: Oman’s Major Green Hydrogen Projects Take Shape
Hyport Duqum aims to produce over 50 kilotons of green hydrogen annually by 2029. Hydrom plans to award up to three land blocks in Dhofar in Q1 2024. Recently, Hydrom signed $20bn agreements with Amnah, Green Energy Oman, and BP Oman for major green hydrogen projects in Al Wusta. These agreements signify Oman’s commitment to stimulate its green hydrogen sector and strengthen its global position. With ample renewable energy sources and vast land availability, Oman could become a leading hydrogen producer by 2030.