In a bid to assert itself as a significant player in the green hydrogen landscape, Hydrogen Oman (Hydrom), a subsidiary of Energy Development Oman, is strategically establishing an infrastructure company dedicated to Oman’s burgeoning green hydrogen sector.
This move aligns with Oman’s ambitious plan to produce 1 million tonnes of green hydrogen annually by 2030, positioning the Sultanate as the world’s sixth-largest producer and the largest exporter in the Middle East.
The infrastructure company’s major stakeholders, including the Oman Electricity & Transmission Company (OETC), Nama Water Services, and OQGN, underpin Oman’s grand vision. This venture forms a crucial component of Oman’s net-zero plan, which not only involves green hydrogen production but also envisions the substitution of natural gas with green hydrogen as the primary fuel for key industries.
Hydrom’s strategic approach involves incentivizing green hydrogen projects through equity shares in exchange for vital resources like water, electricity, and pipeline networks. The upcoming land auction on January 28, 2024, presents a pivotal opportunity for further project expansion. Abdulaziz al-Shidhani, Hydrom’s managing director, anticipates that these auctions, especially in the Dhofar region, will propel green hydrogen production commitments toward the 2030 target.
Hydrom’s recent award of a hydrogen block to the SalalaH2 consortium signifies Oman’s commitment to creating green hydrogen hubs. The SalalaH2 project, involving OQ Alternative Energy, Marubeni Corporation, Dutco Overseas, and Samsung C&T, is slated to generate over 4GW of renewable energy for green hydrogen and ammonia production. The anticipated output includes 1 million tonnes per year of green ammonia and 175,000 tonnes of green hydrogen, making it a cornerstone in Oman’s green hydrogen initiatives.
Apart from the SalalaH2 venture, Oman is witnessing the development of several other significant hydrogen projects, such as the 25GW Green Energy Oman project in Al-Wusta Governorate and BP’s green hydrogen schemes in Duqm and Dhofar. Additionally, consortiums led by Belgium’s Deme Group and India’s Acme Group are actively planning green hydrogen projects in the Sultanate.
Hydrom’s signing of two land concession agreements valued at $20 billion in June emphasizes the seriousness of Oman’s commitment to green hydrogen. These agreements, awarded to the Danish-led Amnah consortium and a consortium led by Posco and Engie, are significant steps, although financial investment decisions are pending, with ongoing pre-front-end engineering and design (FEED) work and offtake negotiations.