In Oman, a consortium led by ENGIE and POSCO has secured a 340 sq kilometre land block in Duqm to develop a mega green ammonia project.
With ambitious goals for both upstream renewable electricity generation and downstream green ammonia production, the project aims to be a game-changer in the region’s decarbonization efforts. This article delves into the goals, technology, potential impact, and challenges surrounding the consortium’s efforts to create a sustainable and eco-friendly energy landscape in Oman.
The consortium, formed by ENGIE and Korean steel giant POSCO, emerged victorious in a public auction overseen by Hydrom, the orchestrator of Oman’s green hydrogen industry. Teaming up with Samsung Engineering, Korea East-West Power Co (EWP), Korea Southern Power Co. (KOSPO), and FutureTech Energy Ventures Company Ltd, the consortium envisions a comprehensive green ammonia production complex in Duqm.
The project’s key components include upstream solar and wind farms, electrolysers for green hydrogen production, and a downstream green ammonia plant. The consortium aims to achieve a production capacity of 1.2 million tonnes per annum (mtpa) of green ammonia by 2030. Renewable electricity, generated from 5 gigawatts (GW) of solar and wind capacity supported by battery energy storage, will power the electrolysers, producing around 200 kilotonnes of green hydrogen annually. This green hydrogen will then undergo processing to create green ammonia at the Special Economic Zone in Duqm.
ENGIE’s expertise extends to both upstream renewable electricity development and downstream green ammonia production. The company’s vast experience in renewables will be harnessed to develop wind and solar components. Additionally, ENGIE aims to be involved in the production of green hydrogen and the Haber-Bosch process, the industrial facility responsible for ammonia production. The ultimate goal is to export the green ammonia, which serves as a natural carrier for the transport of green molecules.
As the consortium leaders, ENGIE and POSCO will have a 50% controlling stake, with the remaining 50% shared among the consortium partners. The involvement of diverse partners with complementary skills enhances the project’s commercial appeal. POSCO’s commitment as an offtaker to lift the green hydrogen output further solidifies the project’s bankability.
The ENGIE and POSCO consortium’s pursuit of Oman’s green ammonia mega project exemplifies the global shift towards sustainable energy solutions. By blending upstream renewable electricity generation with downstream green ammonia production, the project aims to drive Oman’s decarbonization efforts and contribute to a cleaner, greener future. As the consortium strives to overcome challenges and achieve its ambitious goals, it stands at the forefront of a transformative journey towards sustainable and eco-friendly energy landscapes in Oman and beyond.
