ACWA Power of Saudi Arabia, Oman’s state-owned energy company OQ, and Air Products of the United States have entered into an agreement to investigate developing a hydrogen project in the sultanate’s southern governorate of Dhofar.
The memorandum of understanding calls for the conduct of a feasibility study on building the H2Oman project in Dhofar with a capacity of 1 million tons of green ammonia per year.
ACWA Power is a partner in Saudi Arabia’s $6.5 billion green hydrogen and ammonia project, which is being built in collaboration with the world’s first zero-carbon city, Neom, and Air Products. ACWA Power is 44 percent owned by Saudi Arabia’s national wealth fund.
Neom is a component of Crown Prince Mohammed bin Salman’s Vision 2030 initiative, which aims to diversify the Saudi economy away from oil. Neom is expected to begin operations in the first quarter of 2026, producing 240,000 mt/year of green hydrogen and 1.2 million mt/year of ammonia.
Oman, the Middle East’s largest non-OPEC oil producer, is in talks with investors to develop environmentally friendly ammonia and hydrogen projects in three free zones, a government official said Aug. 23.
The country’s Public Authority for Special Economic Zones and Free Zones is now in negotiations with many multinational businesses interested in developing projects in Duqm, Salalah, and Sohar to manufacture green hydrogen and ammonia. Jalal al-Lawati, an authority official, stated in a statement.
The authority has set aside almost 200 square kilometers of land in Duqm for renewable energy projects, Lawati stated.
