International energy corporations have expressed a lot of interest in two green-hydrogen concessions that Oman stated will be given early in the next year and could require an investment of up to $10 billion.
International energy corporations have expressed a lot of interest in two green-hydrogen concessions that Oman stated will be given early in the next year and could require an investment of up to $10 billion.
By the end of March, the government intends to select the successful bidders for the blocks close to the Duqm port. In order to power large electrolyzers and produce green hydrogen, a fuel viewed as important for the global transition to greener energy, investors will expand the lands with solar panels and wind turbines.
Oman is one of several Middle Eastern nations aiming to dominate the export of green hydrogen during the following ten years, along with Saudi Arabia, Egypt, and Morocco. Although it is still far more expensive to produce than oil and natural gas, the fuel does not release any gases that contribute to global warming when it is consumed.
Request-for-qualification documents for the Omani blocks have been purchased by more than 40 businesses, including TotalEnergies SE and BP Plc.
Salim Al-Aufi, the energy minister, stated in a Muscat, Oman, interview that “all the big names are on the list.” “The coexistence of solar and wind resources, as well as the enormous amount of available land, are what lure people to Oman. As a result, Oman can produce renewable energy for the lowest possible price.
Goal of $140 billion
According to him, each project might need to invest $4 billion to $5 billion in renewable energy facilities and electrolyzers, which separate water into hydrogen and oxygen. With the two plants, Oman’s total power generation capacity will likely rise from 12 GW to 6-8 GW.
In April, a new round of bids for land close to Salalah in the south will start.
By 2030, the nation hopes to produce at least 1 million tons of green hydrogen annually, with production growing to over 8 million by 2050. To attain that goal, the government predicts investments totaling $140 billion will be necessary.
Oman will demand that at least 20% of the Duqm blocks be made available to the government’s preferred state-owned corporations. Investors who can demonstrate that they have contracts in place with potential buyers will be viewed more favorably. Green hydrogen may be used to power buildings, power plants, and automobiles, including aircraft.
In order to help the nation negate its carbon emissions by 2050, the government also wants some of the hydrogen to be utilized by regional businesses.
According to Al-Aufi, those who already have a confirmed off-taker would receive priority. “We are counting on the developers and investors to bring the market with them. We require a view of that line of sight.
