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Green Hydrogen H2 News

EnerTech and Consortium to Build Oman’s Major Green Hydrogen Plant

Anela DoksoBy Anela Dokso09/06/20233 Mins Read
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EnerTech Holding Company, a Kuwaiti state-owned clean energy investment and development firm, in collaboration with the Green Energy Oman (GEO) international consortium, has secured one of Oman’s first hydrogen blocks from Hydrom.

The GEO consortium, comprising EnerTech, OQ (Oman’s integrated Energy Company), Shell Oman, InterContinental Energy (ICE), and Golden Wellspring Wealth for Trading (GWWT), will develop Block Z1-04 in the Dhofar Governate, aiming to produce 150,000 metric tons of green hydrogen annually utilizing 4 gigawatts of renewable energy.

This landmark deal is part of a series of agreements in Oman, with a collective investment value exceeding $20 billion, paving the way for the production of over 750,000 tonnes of green hydrogen per year. These initiatives align with Oman’s ambitious target of achieving 1 million tons per year of green hydrogen production by 2030.

Abdullah Al Mutairi, Vice Chairman and CEO of EnerTech Holding Company, expressed enthusiasm regarding the award, emphasizing the consortium’s commitment to advancing the GEO project as a prominent global green fuels initiative. He acknowledged Oman’s potential as a leading producer of green hydrogen and recognized the strategic opportunities presented by the market.

The agreement was signed in the presence of His Excellency Eng. Salem bin Nasser Al-Awfi, Minister of Energy and Minerals, along with prominent industry figures, including representatives from EnerTech Holding Company, OQ, Shell Oman, Intercontinental Energy, and GWWT.

The GEO project, under development since 2017, is poised to become one of the world’s largest green hydrogen plants. Located in the Al Wusta governorate of central Oman, it will rely on 25 gigawatts (GW) of renewable solar and wind energy to achieve full capacity. The project’s estimated production capacity reaches approximately 1.8 million tonnes of green hydrogen, which can be further converted into 10 million tonnes of green ammonia annually. This ambitious endeavor aligns with Oman Vision 2040, reinforcing the country’s commitment to enhancing renewable energy expertise, fostering in-country value creation, and generating significant employment opportunities.

The development of green hydrogen infrastructure and production facilities in Oman signifies a pivotal step towards a more sustainable future. Green hydrogen, produced from renewable energy sources, offers a carbon-neutral alternative to traditional fossil fuels. It can be employed in various sectors, including transportation, industry, and power generation, significantly reducing greenhouse gas emissions and contributing to global decarbonization efforts.

However, the successful implementation of large-scale green hydrogen projects does pose several challenges. Overcoming technological hurdles, ensuring cost-effectiveness, and establishing a robust supply chain are key considerations. Additionally, collaboration among government entities, private companies, and research institutions is vital to drive innovation, create supportive policies, and foster investment in this emerging sector.

As Oman emerges as a hub for green hydrogen production, the global energy landscape stands to benefit from the sustainable and renewable attributes of this clean fuel source. The developments in Oman serve as an exemplar of the region’s commitment to achieving a greener future, marking a significant milestone in the transition towards a carbon-neutral economy.

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