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hydrogen

Fortescue and Actis Secure Rights to Develop Hydrogen Project in Oman

Anela DoksoBy Anela Dokso30/04/20241 Min Read
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A consortium led by Australia’s Fortescue and investor Actis has secured the rights to develop a 200,000-tonne-per-year green hydrogen project in Oman.

This initiative, awarded by Energy Development Oman (EDO)-owned Hydrogen Oman (Hydrom), aims to harness abundant renewable resources to produce green hydrogen for local and international markets.

The allocated land is poised to host significant wind and solar capacities, totaling up to 4.5GW, to power electrolysis for hydrogen production. The consortium plans to supply green hydrogen to local industrial offtakers and process derivatives like ammonia for export through the Port of Salah. This ambitious endeavor underscores Oman’s potential as a hub for low-cost green ammonia production.

Oman’s burgeoning green hydrogen sector reflects a global shift towards sustainable energy solutions. With a stable regulatory environment and strategic location, the project presents a compelling investment opportunity. However, critical analysis is imperative to assess its feasibility and long-term sustainability.

While the consortium highlights strong offtake demand and regulatory support, challenges such as infrastructure development and market dynamics warrant scrutiny. Oman’s attractiveness for green ammonia production hinges on factors like land availability, renewable resources, and port infrastructure. Careful consideration of these factors is crucial for realizing the project’s potential.

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