Oman-Korea venture strikes green ammonia deal with Thailand

A joint venture between companies from Oman and Korea will supply 5 million tonnes of green ammonia to Thailand under a long-term sales contract valued at $4.5 billion. 

The strategic partnership between Korean green hydrogen company Lupro and Oman’s Bait Muscat was sealed in June when they agreed to build a green ammonia plant in Duqm, on Oman’s east coast. 

Construction of the facility will start this year and it intends to start supplying ammonia to Thailand by 2027. 

The plant will produce 1 million tonnes of green ammonia a year in the initial phase. It should then increase this to 2.5 million tonnes. 

Green ammonia is made from renewable hydrogen.  

Shell and BP have previously announced hydrogen projects in Oman. At least six schemes will be developed at an estimated cost of $38 billion in the governorates of Dhofar and Al Wusta, where Duqm is located.

These will have an aggregate output of 1 million tonnes annually by 2030.

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In December Oman announced plans to establish a high-powered “delivery support unit” to ease logistical hurdles with the projects.

By 2040 green hydrogen exports are projected to be worth 80 percent of Oman’s current exports of liquefied natural gas, according to the International Energy Agency.