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Oman secures $10 billion in green hydrogen deals, boosting sustainable energy transition

The combined projects will result in the production of 250,000 metric tons of green hydrogen, which is equivalent to a renewable energy capacity of 6.5 gigawatts.

Oman secures $10 billion in green hydrogen deals, boosting sustainable energy transition
[Source photo: Anvita Gupta/Fast Company Middle East]

Hydrom, a company based in Oman, is aiming to spearhead the development of innovative projects for green hydrogen production in collaboration with an international consortium, valued at $10 billion.

According to the Oman News Agency, the planned projects in the Al Wusta governorate are expected to have a combined production capacity of 250,000 metric tons of green hydrogen, equivalent to 6.5 gigawatts of renewable energy.

“The fast-paced efforts behind the announcement of these new projects reflect Oman’s commitment to reinforce its leading position in the global green hydrogen sector in line with its energy transformation strategy,” said Salim Al Aufi, Oman’s Energy Minister.

The first agreement was signed with the Popsco-Engie consortium, and it entails the development of a project with a production capacity of about 200,000-220,000 tons per annum of green hydrogen. This production will be supported by 5.2 GW of renewable energy sources. The green hydrogen will be subsequently converted into ammonia for export purposes. The estimated investment for this project is $7-8 billion.

In addition to the Popsco-Engie consortium, the project involves other consortium partners: Samsung Engineering, Thai national petroleum company PTTEP (FutureTech Energy Ventures), Korea East-West Power Co., and Korea Southern Power Co.

Furthermore, Hydrom has signed a second agreement with the Hyport Duqm consortium, which comprises Belgium-based contractor and developer DEME, as well as Oman-based energy company OQ. The initial phase of this project aims to produce approximately 50,000 tons of green hydrogen and associated ammonia per year. To achieve this, it will utilize 3-3.5 GW of renewable energy. The produced green hydrogen and ammonia will be primarily intended for export purposes.

Earlier this month, Hydrom entered into agreements valued at $20 billion with Amnah, Green Energy Oman, and BP Oman to initiate three significant green hydrogen projects in Al Wusta.

As the demand for a more sustainable future intensifies, the Hydrogen Council, a global initiative led by CEOs, and the One Planet Sovereign Wealth Funds Network have collaboratively established a joint forum to expedite the development of clean hydrogen. This initiative will facilitate discussions between leaders in the hydrogen industry and prominent investors to accelerate the growth of the clean hydrogen economy.

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