Oman to develop twin green hydrogen projects with $11 billion investment

Oman has chosen two major projects to develop green hydrogen production plants in the Dhofar region. The total investments coming in for the green hydrogen stint would be totalling $11 billion (EUR 10.26 billion) in the Oman’s second round of green hydrogen tender.

Hydrom, the state-owned company focused on advancing the green hydrogen sector, announced that it has partnered with a consortium comprising EDF Renewables, Japan’s J-POWER, and UK-based YamnaCo to build a 2.5 GW hydrogen plant.

By 2030, this project aims to produce approximately 178,000 tonnes of green hydrogen annually, utilizing a 4.5 GW wind and solar energy setup with battery storage in Oman.

The produced hydrogen will be supplied to an ammonia plant planned for construction in the Salalah Free Zone, expected to yield 1 million tonnes of green ammonia each year.

The second winning team, consisting of investment firm Actis and Australia’s Fortescue, plans to produce up to 200,000 tonnes of green hydrogen per year. Their strategy involves deploying up to 4.5 GW of wind and solar energy, with the plant’s output destined for local industrial consumers and for the production of derivatives like green ammonia for export via the Port of Salalah.

These projects are forecasted to elevate green hydrogen production in Oman to 1.38 million tonnes annually by 2030.

The second round of the Oman tender, initiated last June, offered three blocks in Dhofar for establishing green hydrogen production plants. The winners were scheduled to be announced by the end of the first quarter of 2024.

In the initial round, Oman sealed agreements for green hydrogen initiatives in the Duqm region, with combined investments estimated at around USD 30 billion. The land allocations secured during the first tender phase are anticipated to drive Oman towards its goal of generating at least 1 million tonnes of green hydrogen by the end of the decade.