Oman to build US$50 bn green hydrogen projects
Hydrogen Oman “Hydrom” company, a subsidiary of Energy Development Oman (EDO) has signed six term-sheet agreements with a number of developers to invest in green hydrogen projects in Oman, with a value of around US$50 billion over the next seven years. The term-sheet agreements were signed with developers from Belgium, the Netherlands, UK, Japan, Singapore, Germany, India, Kuwait and the UAE.
The production capacity of these projects reaches 15 GW of electricity, built on an area of approximately 1,500 sq km in the governorates of Al Wusta and Dhofar.
The agreements include contracting for 47 years, of those seven years are for the development and establishment of the projects and 40 years for operating the projects.
These agreements include two projects for BP Alternative Energy Investments Limited. The first project in Duqm will be set up on area of 320 sq km. The second project in the Governorate of Dhofar will be set up on an area of 427 sq km with a production capacity of 3.3 GW of electricity and 150,000 tonnes/year of hydrogen, for both projects.
The agreements also include the Green Energy Oman (GEO) project on an area of 337 sq km, SalalaH2 project on an area of 419 sq km. The production capacity of these projects is similar to the BP projects.
Furthermore, the agreements include Hyport Duqm project on an area of 150 sq km. The production capacity of this project is 2 GW of electricity and 70,000 tonnes/year of hydrogen.
Another project is the Green Hydrogen and Chemicals SPC on an area of 80 sq km and a production capacity of 1 GW of electricity and 38,000 tonnes/year of hydrogen.
The agreements were signed by Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals Chairman of Hydrogen Oman’s Board of Directors, and heads of the investing companies.
Al Aufi said that the Sultanate of Oman has taken several bold steps in keeping pace with international transformations in energy and climate issues during the previous period. Those steps include Oman’s commitments to reach net zero carbon emissions by 2050, in addition to preparing necessary policies to press ahead with projects and plans for the transition to green energy.
In a press statement, the Minister said that he expects green hydrogen to be produced in the Sultanate of Oman between 2028 and 2030, both for the use of local industries or for exporting.