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Green Hydrogen H2 News

Toward green hydrogen-based ammonia production facility in Oman

Arnes BiogradlijaBy Arnes Biogradlija26/05/20223 Mins Read
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A joint development agreement (JDA) was signed by Air Products, OQ, and ACWA Power in Oman for a multibillion-dollar investment in a world-scale green hydrogen-based ammonia manufacturing facility driven by renewable energy.

The JDA follows the signing of a memorandum of understanding in December 2021.

The joint venture project, which is envisioned for Oman’s Salalah Free Zone, would be based on proven, world-class technology and would include the innovative integration of renewable power from solar, wind, and storage, as well as the production of hydrogen by electrolysis, nitrogen by air separation, and green ammonia.

The green hydrogen-based ammonia manufacturing facility is expected to be jointly owned by the project participants.

Seifi Ghasemi, Chairman, President, and Chief Executive Officer of Air Products, stated, “We are thrilled and honored to collaborate with the Sultanate of Oman on this multibillion-dollar project, which is similar to the world-scale green hydrogen project we are implementing with our NEOM partners in Saudi Arabia. We’re excited to put our hydrogen know-how, technology, and more than 60 years of expertise to work on this project and assist the globe take another step toward decarbonization.”

Mulham Al Jarf, Chairman of OQ, stated of the initiative, “We are pleased to work with ACWA Power and Air Products. This project positions OQ as an energy transition enabler, using our capabilities and experience in downstream chemicals, notably in Salalah, where we have large operations, as well as our established ability to off-take goods and distribute them, to worldwide clients, at reasonable prices. The project is in line with the Sultanates’ renewable energy plan and encourages investments in alternative energy sources, both of which are important components of Oman Vision 2040.”

Chairman of ACWA Power Mohammad A. Abunayyan stated, “We are extremely proud to support the Government of Oman’s ambition to pursue decarbonization and advance the development of green hydrogen, which is considered to be the fuel of the future, as a company that is driving the transition to a greener future through the use of cutting-edge technologies and innovative solutions. We began developing and constructing water desalination and power generation plants in Oman in 2011, and we are continuing to add to our diverse portfolio in the Sultanate. We were able to successfully establish Oman’s first utility-scale renewable energy plant by using our global knowledge. Because of its potential, resources, and location, Oman remains a major market for ACWA Power, making it a fantastic facilitator for the generation of green hydrogen. The signing of the joint development agreement is another significant step forward, demonstrating our partners’ ongoing faith in ACWA Power to bring this ambitious project to fruition.”

“We intend to use our proven track record, knowledge, and expertise in developing sustainable global scale green projects like NEOM – a pioneering at-scale green hydrogen and ammonia facility – and we are confident in leading green hydrogen development globally through partnership and collaboration,” Abunayyan added.

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