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Green Hydrogen H2 News

Oman Signs Agreements for $20 Billion Green Hydrogen Projects

Anela DoksoBy Anela Dokso02/06/20233 Mins Read
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In a significant move towards sustainable energy, Hydrogen Oman Company (HYDRUM) has signed three groundbreaking agreements to develop green hydrogen production projects in Oman.

With total investments exceeding $20 billion, these projects mark a major milestone in the country’s commitment to the green hydrogen sector. Hydrom, established in 2022 as a wholly-owned subsidiary of the Oman Energy Development Company, plays a pivotal role in regulating the green hydrogen sector and facilitating project development in the Sultanate.

The three projects, part of the first round of bidding for land that Hydrom initiated in November, have attracted notable industry players. Agreements were signed with the Amna Alliance, consisting of infrastructure company Kobehagen, Blue Power, and Green Partners, as well as with the Oman Green Energy Alliance, which includes Oman Shell, OQ, Enertech of Kuwait, Intercontinental Energy, and the Golden Thara Spring for Trading. Additionally, BP Oman is among the key partners in one of the agreements.

These projects will span an expansive area of 960 square kilometers and aim to achieve a combined production capacity of 500,000 metric tons of green hydrogen. The investments made demonstrate the growing interest and confidence in green hydrogen as a sustainable energy source.

Hydrom also announced the formation of the Hydrogen Common Infrastructure Advisory Board, which comprises master developers of the projects, national operators of electricity, water, and gas services, as well as international developers with expertise in the field. This collaborative approach ensures comprehensive planning and effective implementation of the necessary infrastructure for green hydrogen production.

Omani Minister of Energy and Minerals, Salem Al Aufi, emphasized the significance of these agreements, highlighting the completion of the regulatory framework and the establishment of the hydrogen sector’s structure. The Sultanate of Oman is taking determined steps towards becoming a leader in green hydrogen production. By defining competition procedures for investment opportunities and mechanisms for granting concession areas, Oman is positioning itself at the forefront of countries embracing sustainable energy alternatives.

The development of green hydrogen projects in Oman holds immense potential. Green hydrogen, produced using renewable energy sources, offers a clean and versatile energy solution. It can be utilized in various sectors, including transportation, industry, and power generation, enabling a significant reduction in carbon emissions. Moreover, the establishment of a robust green hydrogen sector contributes to job creation, technological advancements, and economic growth.

Oman’s ambitious push into green hydrogen underscores the country’s commitment to combating climate change, reducing dependency on fossil fuels, and achieving a more sustainable future. These projects serve as catalysts for innovation, investment, and collaboration, propelling Oman to the forefront of the global energy transition.

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