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BP buys 49% of Oman’s green hydrogen project

By Pramod Kumar
Oman could become the Middle East's largest hydrogen exporter by 2030 Unsplash.com/Katerina Kerdi
Oman could become the Middle East's largest hydrogen exporter by 2030

BP, the UK oil and gas company, will acquire a 49 percent stake in Oman’s Hyport Duqm green hydrogen project.

The oil major signed an agreement with state-backed energy company OQ and Brussels-listed Dredging, Environmental and Marine Engineering (Deme) on June 13, BP said in its second-quarter 2024 financial statement.

The acquisition is subject to regulatory approvals. The facility can produce 57,000 tonnes of green hydrogen per year.

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No financial details were given.

In June 2023, Deme and OQ signed a development agreement with Hydrom to develop the project, covering an area of 150 sq km.

The first phase of the project is set to produce 330,000 tonnes of green ammonia and more than 650,000 tonnes during the second phase, Deme said in a statement.

In May, industry experts told AGBI that hydrogen presents “enormous” opportunities for Oman, but the sultanate needs to focus on timely delivery of new project agreements if it is to achieve its ambitious targets.

Oman aims to produce at least 1 million tonnes of renewable hydrogen annually by 2030, up to 3.75 million tonnes by 2040, and up to 8.5 million tonnes by 2050.  

The International Energy Agency says Oman is on track to become the sixth-largest exporter of hydrogen globally, and the largest in the Middle East, by 2030.

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