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Green Hydrogen H2 News

Oman attracts $6.5B in green hydrogen investments

Arnes BiogradlijaBy Arnes Biogradlija29/12/20223 Mins Read
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A sizable green hydrogen project in southern Oman is anticipated to draw $6.5 billion in foreign direct investment.

The H2Uman Green Hydrogen Project’s lead engineer, Siddiq Al Lawati, said that the project, which will be developed south of Oman, will have significantly favorable effects on the Sultanate’s economic, social, and environmental spheres.

Al Lawati noted that the project will significantly increase the participation of local production inputs while speaking at the last energy forum in Muscat.

Prior to the official announcement of the Green Hydrogen Strategy in October 2022, the Government of Oman highlighted the project as one of a number of green hydrogen initiatives.

Through a partnership between the food juggernaut Air Products, the OQ Group of Oman, and the ACWA Power Group of Saudi Arabia, the H2Uman Green Hydrogen Project is being carried out.

In order to produce 1.1 million tonnes of green ammonia annually, the HTO OMAN Green Hydrogen Project will use 3 GW of solar, wind, and 2 GW of electrolysis power.

The project will gain a lot from another similar green hydrogen project situated in NEOM, Saudi Arabia, a future city that is now under construction in the country’s northwest.

Engineer Siddiqa Al-Lawati, in charge of the Hto2 UOman Green Hydrogen Project, stated that in this regard, partners from the consortium implementing the H2 Oman project are creating a project in NEOM that is comparable to it in terms of production capacity, as it can directly benefit from the experiences of the NEOM City project in terms of planning and project implementation, as well as technical aspects and design work.

During the course of implementation, the H2 Oman Green Hydrogen Project is anticipated to draw roughly $6.5 billion in foreign direct investment, and the local component will play a significant role in the project, she said.

According to the official of the proposed green hydrogen project south of Amman, 29% of capital expenditures are scheduled to be managed and dispersed locally, and 53% of running expenses will be spent locally during the project’s 30-year lifespan.

She continued by saying that by taking into account the market’s desire for investment and injecting investments within specific parameters, it is also conceivable to increase the levels of capital expenditure by an additional 9% on the domestic market.

In addition to 330 jobs once the operation phase starts, the project is anticipated to generate 15,000 jobs during the construction phase.

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