Oman Hydrogen Company (Hydrome), a subsidiary of Oman Energy Development, has signed two agreements to develop new green hydrogen production projects in the Al Wusta Governorate. The agreements, signed with the “POSCO-ENGE” alliance and the “Highport Duqm” alliance, have a total investment value of approximately $10 billion. The projects are expected to produce a total of 250 kilometric tons of green hydrogen, equivalent to 6.5 gigawatts of renewable energy capacity.
The first agreement is with the Bosco-Engy consortium, which includes Bosco Holding Company, Miskat Middle East Company, Samsung Engineering Limited, Future Tech Energy Ventures Limited, and Inc. Korea East-West Energy Co., Ltd. and South Korea Energy Co., Ltd. This consortium will produce about 200 tons annually of green hydrogen, equivalent to 5.2 gigawatts of renewable energy, for the purpose of producing and exporting ammonia. The accompanying plant will be built in Al Wusta Governorate.
The second agreement is with the “Highport Duqm” consortium, consisting of the “OQ Alternative Energy Company” and the “Demi Constances” company. This consortium aims to produce about 50 kilotons annually of green hydrogen during the first phase of the project by 2029. This agreement follows the signing of binding commercial terms in March, which aimed to regulate previous hydrogen initiatives to establish “Hydrom” in accordance with the royal decree.
With these two agreements, Hydrome has now signed a total of five agreements for five projects, with an investment value exceeding $30 billion. The first round of bidding, which took place in November last year, also included the launch of the second auction for green hydrogen concession areas. The second round of public auctions on green hydrogen areas has now been announced, with three investment opportunities in the Dhofar Governorate. Projects in this round are expected to be awarded by the end of the first quarter of 2024.
Engineer Salem bin Nasser Al Aufi, Minister of Energy and Minerals and Chairman of the Board of Directors of Hydrome, stated that these agreements demonstrate the attractiveness of the investment environment and the seriousness of Oman in establishing itself as a global center in the green hydrogen production sector. The Sultanate of Oman aims to become one of the largest exporters of hydrogen in the world by 2030. Eng. Mazen bin Rashid Al Lamki, CEO of the Oman Energy Development Company, expressed hope for further achievements during the second bidding round, while Eng. Abdulaziz bin Saeed Al-Shaitani, General Manager of Hydrome, emphasized the government’s efforts to drive the growth of the green hydrogen sector.
In June, Hydrome signed three agreements with “BP Oman,” the “Amna” alliance, and the “Oman Green Energy” alliance, with an investment value exceeding $20 billion. These agreements are expected to result in the production of half a million metric tons of green hydrogen, equivalent to 12 gigawatts of renewable energy capacity. The Sultanate of Oman aims to produce over one million tons of green hydrogen by 2030, utilizing 30 percent of the currently allocated land by 2050, with an investment of $140 billion.
How will the integrated green hydrogen project in the Al Wusta Governorate contribute to Oman’s clean energy goals?
To develop and operate an integrated green hydrogen project in the Al Wusta Governorate.
The Oman Hydrogen Company (Hydrome), a subsidiary of Oman Energy Development, has recently announced the signing of two pivotal agreements that will pave the way for the development of new green hydrogen production projects in the Al Wusta Governorate. These projects, with a combined investment value of approximately $10 billion, are set to make a significant impact on the country’s renewable energy sector.
The first agreement is with the “POSCO-ENGE” alliance, a consortium formed by several major companies including Bosco Holding Company, Miskat Middle East Company, Samsung Engineering Limited, Future Tech Energy Ventures Limited, Korea East-West Energy Co., Ltd., and South Korea Energy Co., Ltd. This alliance will focus on the production and exportation of ammonia, utilizing green hydrogen as a key component. The consortium plans to produce around 200 tons of green hydrogen annually, which is equivalent to 5.2 gigawatts of renewable energy capacity. The accompanying plant will be constructed in the Al Wusta Governorate.
The second agreement is with the “Highport Duqm” alliance, which comprises OQ Alternative Energy Company and Demi Constances. The aim of this consortium is to produce approximately 50 kilotons of green hydrogen per year during the initial phase of the project, scheduled for completion by 2029. This agreement comes after the signing of binding commercial terms in March, which outlined the plans for an integrated green hydrogen project in Al Wusta Governorate.
The combined efforts of these alliances will result in the production of a total of 250 kilotons of green hydrogen, which is equivalent to an impressive 6.5 gigawatts of renewable energy capacity. This substantial output will significantly contribute to Oman’s clean energy goals and support its commitment to reducing carbon emissions.
These agreements mark a major milestone for the development and expansion of Oman’s green hydrogen industry. The investment value of $10 billion demonstrates the significant commitment to developing this sector and the potential it holds for driving economic growth and sustainable development in the country.
Furthermore, the projects are aligned with Oman’s vision for a diversified energy mix and its aspirations to become a key player in the global green hydrogen market. By leveraging its abundant renewable energy resources, Oman is well-positioned to capitalize on the growing demand for clean energy alternatives.
The signing of these agreements highlights the importance of international cooperation and the role of strategic alliances in advancing the green hydrogen sector. It also showcases Oman’s commitment to fostering partnerships with global industry leaders to leverage their expertise, technology, and financial resources.
As the projects progress, they are expected to create numerous job opportunities, boost local economies, and contribute to Oman’s sustainable development objectives. Moreover, the production and exportation of green hydrogen will enhance the country’s energy security and position it as a key player in the global energy transition.
Overall, these agreements between Hydrome and the “POSCO-ENGE” alliance and the “Highport Duqm” alliance represent an important step forward for Oman’s green hydrogen industry. By harnessing its renewable energy potential and partnering with leading international companies, Oman is poised to capitalize on the vast opportunities presented by the global green hydrogen market.
