DOTCO, the Dubai Transportation Company, and the Okio Group’s alternative energy sector signed a joint development agreement to develop green hydrogen and green ammonia project in the Salalah Free Zone. The consortium includes representatives from the Okio Group, Marubeni, Landy, and the Dubai Transportation Company.
Salalah Free Zone in the Dhofar Governorate was chosen because of its abundant solar and wind energy resources, which are complemented by a world-class infrastructure for shipping through the Port of Salalah, making it an important location for a global center for the production and export of hydrogen and green ammonia, as well as for other industrial purposes.
Using the existing ammonia plant of the “Okio” group in Salalah, the “SalalaH2” project aims to produce up to one thousand tons of green ammonia per day. In addition, an electrolysis facility with a capacity of 400 megawatts will be established in order to produce green hydrogen, and approximately one gigawatt of solar and wind energy generated by existing or new facilities will be used to operate the electrolysis facility.
The alliance is currently conducting studies in order to make a decision on whether or not to proceed with investments. The results of these studies will be shared with the existing buyer for the production of an ammonia plant, who will then explore and coordinate the findings with the buyer’s existing buyer for the production of an ammonia plant, including the combined fuel needs of coal-fired power plants in Asia, the renewable energy needs of fertilizer plants in Europe, and the needs of the shipping industry for global carbon-neutral fuels.
As a result of the project, the Omani economy is expected to reap numerous benefits. These include contributing to the enhancement and diversification of energy infrastructure, diversifying the skills of energy workers, and transferring expertise and cutting-edge technological innovations to the region.
The CEO of Okio Group’s Alternative Energy division, Dr. Salem bin Saif Al-Hadhaili, stated that this alliance will result in integration in the Salalah complex between liquefied petroleum gas, methanol, and ammonia. He also stated that the exploitation of green particles and green hydrogen is a real beginning that paves the way for the production of carbon-free fuel. This is especially true given the Sultanate’s tremendous potential in this sector.
He went on to say that this cooperation demonstrates the Oman Investment Authority’s commitment to maximizing value and diversifying the Omani economy in accordance with the Sultanate’s goal to promote investment in renewable and alternative energy resources.
According to Yoji Sato, General Manager of Marubeni’s Middle East and Africa Department, the business is eager to take a prominent role in the implementation of this project to promote the development of the hydrogen economy in the Sultanate.
Deputy Vice President of Linde Clean Energy Company, Philip Pickard, explained that hydrogen and its derivatives will play an important role in reshaping the global energy landscape, and that the company anticipates that the project to produce green hydrogen will contribute significantly to the development of the local community.
In an interview with DOTCO, Tariq Baker, Vice Chairman of the Board of Directors of the Dubai Transportation Group of Companies (DOTCO), stated that the group’s participation in this alliance will enable it to become a part of the green hydrogen economy by spearheading new investments in the value chain for the production of green hydrogen and green ammonia.