Hydrogen Oman (Hydrom) has signed three agreements worth over $20 billion for massive green hydrogen projects. With this, it has granted the first green hydrogen blocks in the country.
The first one has been awarded through Phase A Round 1 public auction process, and the other two are awarded following the earlier singing of commercial term sheets, as per reports. Major collaborations have been signed with the Amnah Consortium, Oman Green Energy Alliance and BP Oman. Further to this development, three major green hydrogen projects will be developed in Al Wusta Governorate. Currently, the land leased to the final three winners is only 320sq km, according to reports. It is expected to produce half a million metric tons of green hydrogen, equivalent to 12 gigawatts of renewable energy production capacity.
The said collaborations and investments align with Oman’s goal to meet the 2030 target of 1 million tons per annum of green hydrogen production. Also, for further promotion, the Gulf state had allocated 50,000sq km of land for green hydrogen projects and opened the auction process for the first few blocks late last year.
The developers will be responsible for delivering integrated projects that encompass the entire green hydrogen value chain. This involves renewable energy production, hydrogen production, hydrogen derivatives conversion, and offtake.
The first of two blocks (Z1-01) was awarded to Amnah consortium. It won the public auction launched last year, comprising Copenhagen Infrastructure Partners, Blue Power Partners and Al Khadra, part of Oman’s Hind Bahwan Group. The consortium will develop around 200 kilogram-tonnes per annum (Ktpa) of green hydrogen from 4.5gw of installed renewable energy capacity for planned green steel plants in the Port of Duqm within the special economic zone (SEZ) at Duqm.
The second project was signed with BP Oman to develop green hydrogen for ammonia production and export. It is expected to produce 150 Ktpa of green hydrogen from 3.5gw of installed renewables capacity in Block Z1-03.
The third project was signed with the Green Energy Oman consortium that includes Oman’s integrated Energy Company OQ, Oman Shell, Kuwait’s energy investor EnerTech, InterContinental Energy and Golden Wellspring Wealth for Trading. It is expected to develop green hydrogen and its derivatives and will produce up to 150 Ktpa of green hydrogen from 4gw of installed renewables capacity in Block Z1-04.
Salim Nasser Al Aufi, Minister of Energy & Minerals, said, “Today,with the completion of the regulatory framework, sector structure, first investment opportunities, and block awarding mechanisms, the Sultanate is at the forefront of taking its first serious steps towards green hydrogen production among other nations.”
Khalfan Said Al Shuaili, Minister of Housing & Urban Planning, informed that Oman has assigned over 50,000 sq km in Al Wusta and Dhofar governorates for developing green hydrogen projects that would be awarded in stages.