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Oman invests $11 billion in green hydrogen projects
By 2030, the country is expected to produce a total of 1.38 million tonnes per year.
Oman’s green hydrogen ambitions advanced significantly with the signing of two new projects totaling $11 billion, as reported by Oman News Agency. Hydrom, the government entity overseeing the Sultanate’s green hydrogen strategy, finalized agreements with leading consortiums.
These agreements, following a successful second round of auctions, are said to substantially enhance Oman’s green hydrogen production capacity. By 2030, the country aims to produce 1.38 million tonnes per year (tpa), reinforcing its position as a significant player in the emerging hydrogen market.
“Oman is strategically located between two key green hydrogen demand centers in Europe and Asia. This, in addition to, our tier-1 infrastructure and logistics capabilities has enabled us to leverage our first-mover advantage in the global hydrogen industry,” said Salim Nasser Al Aufi, the Minister of Energy and Minerals and chairman of Hydrom.
The initial project, led by the Electricité de France (EDF) Group consortium, seeks to generate 178,000 tonnes per annum (tpa) of green hydrogen by 2030. Its infrastructure will comprise 4.5 gigawatts of wind and solar power, alongside battery storage and a robust 2.5 GW electrolyzer.
The generated hydrogen will undergo conversion into green ammonia at a new facility located within the Salalah Free Zone, with an annual production capacity of one million tonnes.
Meanwhile, the second project, in collaboration with Actis and Fortescue, aims to establish up to 4.5 gigawatts (GW) of renewable energy capacity. This energy will power electrolyzers capable of producing 200,000 tonnes of green hydrogen annually. The hydrogen will cater to local industries and potentially be exported as green ammonia following processing.
These recent agreements build upon similar deals worth $10 billion signed last June with other consortiums. All projects strategically locate in Oman’s Al Wusta and Dhofar governorates, tapping into the country’s abundant renewable energy potential.