Oman signs 3 green hydrogen projects worth over $20bn

Hydrogen Oman SPC (Hydrom), a subsidiary of Energy Development Oman, has signed three deals to develop green hydrogen projects with investments worth over $20 billion.

The three projects were signed with the consortia of Amnah, Green Energy Oman and BP Oman.

They are expected to yield a total production capacity of half a million tonnes of green hydrogen per annum. This will be from more than 12GW of installed renewable energy capacity at the three sites, each covering an area of 320 sq km in the Al Wusta governorate.

The first of two blocks (Z1-01) in the public auction process launched last year was awarded to a consortium comprising Copenhagen Infrastructure Partners, Blue Power Partners and Al Khadra, part of Oman’s Hind Bahwan Group.

The consortium will develop around 200 kilogram-tonnes per annum (Ktpa) of green hydrogen from 4.5GW of installed renewable energy capacity for planned green steel plants in the Port of Duqm within the special economic zone at Duqm. 

The second project was signed with BP Oman to develop green hydrogen for ammonia production and export. The anticipated annual output for this project is 150 Ktpa of green hydrogen from 3.5GW of installed renewables capacity in Block Z1-03.

The third project was signed with the Green Energy Oman consortium to develop green hydrogen and its derivatives.

The consortium includes Oman’s integrated Energy Company OQ, Oman Shell, Kuwait’s energy investor EnerTech, InterContinental Energy and Golden Wellspring Wealth for Trading.

The project is expected to produce up to 150 Ktpa of green hydrogen from 4gw of installed renewables capacity in Block Z1-04.

Salim Nasser Al Aufi, minister of energy and minerals, said: “Today, with the completion of the regulatory framework, sector structure, first investment opportunities, and block awarding mechanisms, the Sultanate is at the forefront of taking its first serious steps towards green hydrogen production among other nations.”

Khalfan Said Al Shuaili, minister of housing and urban planning, stated that Oman has allocated over 50,000 sq km in Al Wusta and Dhofar governorates for green hydrogen projects to be awarded in stages.