In a significant stride towards sustainable energy, Oman's Dhofar region has clinched a colossal investment of USD 11 billion (EUR 10.26bn) for the development of green hydrogen production plants. This landmark initiative, part of the Sultanate's second round of green hydrogen tender, underscores Oman's commitment to renewable energy and its emergence as a key player in the global green hydrogen market.
Hydrom, the state-owned entity spearheading Oman's green hydrogen sector, announced today a groundbreaking agreement with a consortium comprising EDF Renewables, Japan's J-POWER, and UK-based YamnaCo. Together, they will embark on a monumental project to establish a 2.5 GW hydrogen plant, targeting an annual production capacity of approximately 178,000 tonnes of green hydrogen by 2030. Notably, the plant will harness the power of 4.5 GW of wind and solar energy, supplemented by cutting-edge battery storage technology.
“The collaboration marks a pivotal moment in Oman's journey towards sustainable energy solutions,” stated a spokesperson from Hydrom, emphasizing the strategic significance of the venture.
The produced green hydrogen will fuel an upcoming ammonia plant in the Salalah Free Zone, set to churn out a staggering 1 million tonnes of green ammonia annually, further cementing Oman's position as a hub for renewable energy innovation.
In a parallel endeavor, investment firm Actis and Australia's Fortescue have teamed up to execute a project aimed at generating up to 200,000 tonnes of green hydrogen per annum. This ambitious initiative will leverage up to 4.5 GW of wind and solar energy resources, with the resultant output poised to cater to local industrial demands and serve as a cornerstone for the production of green ammonia derivatives destined for global markets via the Port of Salalah.
These visionary projects are projected to escalate Oman's green hydrogen production capacity to an impressive 1.38 million tonnes annually by the end of the decade, marking a significant stride towards the Sultanate's renewable energy targets.
The second round of Oman's green hydrogen tender, launched in June last year, allocated three prime blocks in Dhofar, southern Oman, for the establishment of green hydrogen production facilities. The announcement of the winners, initially slated for the first quarter of 2024, heralds a new era of sustainable energy development in the region.
In the inaugural round of the tender, Oman inked pioneering agreements for green hydrogen initiatives in the Duqm region, central Oman, with a collective investment valued at approximately USD 30 billion. These strategic land allocations are poised to propel Oman closer to its ambitious goal of generating at least 1 million tonnes of green hydrogen by the decade's end.
