BP’s Hydrogen Production in Oman Enters Concept Development Stage

BP Plc’s green hydrogen project in Oman is currently in the concept development stage.

This stage involves comprehensive data collection using advanced technologies such as light detection and ranging (LiDAR) devices, solar stations, and meteorological masts. These technologies are crucial for assessing feasibility and optimizing the design of the hydrogen production facility near Duqm in the Al Wusta governorate.

While the use of LiDAR and other advanced data collection methods is commendable, it is essential to critically evaluate the integration of these technologies into the project’s operational framework. Industry benchmarks indicate that successful projects seamlessly incorporate these technologies to ensure accuracy and efficiency in hydrogen production.

Strategic Partnerships

In June 2023, BP signed a project development and land use agreement with the state-owned company Hydrom, which oversees the development of the hydrogen industry in Oman. Additionally, BP has entered into agreements with:

• OPAZ: To potentially secure land within the Special Economic Zone at Duqm (SEZAD) for developing green hydrogen derivatives.
• Asyad: To explore logistics opportunities in Oman’s hydrogen sector.
• Oman Hydrogen Center: For collaborations in education and skill enhancement related to renewable energy and hydrogen.

These partnerships are strategically designed to integrate BP’s project into Oman’s broader hydrogen strategy. However, it is crucial to assess whether these collaborations will effectively address the operational, regulatory, and logistical challenges inherent in large-scale hydrogen production.

The green hydrogen project is part of a series of six initiatives, with total investments amounting to approximately USD 20 billion. This significant investment reflects Oman’s ambition to become a leading green hydrogen producer in the region.

Comparatively, global leaders in green hydrogen production, such as Australia and Saudi Arabia, are targeting much larger production capacities, often exceeding 1 million tonnes annually. BP’s target of 150,000 tonnes per year, while substantial, is modest in comparison. The project’s economic viability will depend on its ability to scale up production and reduce costs through technological advancements and strategic infrastructure development.

The success of BP’s green hydrogen project will hinge on the development of supporting infrastructure, including pipelines, storage facilities, and transport networks. Coordination with Oman’s infrastructure plans and regulatory environment will be critical. Ensuring compliance with environmental and safety standards is vital for long-term sustainability and acceptance.