In an attempt to decarbonise the oil and gas companies and the industrial clusters in the country, Oman’s OQ Group is now all set to give these sectors their hand-holding support by supplying clean energy.
The wholly state-owned OQ Group (part of Oman Investment Authority (OIA) is working closely with the Ministry of Energy and Minerals to create a pathway for decarbonisation.
The Group, in its newly published Annual Report 2022, said, “OQ has been working closely with the Ministry of Energy and Minerals (MoEM) to charter a clear pathway for decarbonisation and carbon neutrality in the country, with MoEM mandating OQ to help oil and gas concessions and industrial clusters in the country to decarbonise through the supply of clean energy.”
It also informed that the commitment is part of an extensive portfolio of initiatives planned by the Group in support of its decarbonisation strategy and the nation’s net-zero journey.
In December last year, the Group mapped net-zero road maps for OQ’s sizable Oman-based operational assets under its desertification strategy.
“These road-maps identify opportunities across four clear pathways; energy excellence, clean energy, low carbon molecules and negative emissions to decarbonise OQ’s existing assets and recommended actions to shift OQ’s portfolio towards greener energy,” said the annual report.
The road map shows a plan to harness renewable energy resources to support their dependence on fossil fuel-based energy. In addition, it will help in the decarbonisation of OQ’s upstream and downstream assets.
The report also noted, “OQ also plans investments in solar projects to partially decarbonize the operation of its multi-billion dollar Liwa Plastics complex in Sohar Port and its oilfield activities within its wholly-operated Block 60 in central Oman. Both initiatives are currently under study.”
OQ informed that last year, a Final Investment Decision (FID) linked to developing a 100 MW solar power project planned at Liwa was expected to come up in 2023. OQ has decided to combine conventional power from the electricity grid supplemented by solar PV generation to its Bisat operations in Block 60.
“The PV component will be developed by OQ’s Alternative Unit through an asset lease agreement to OQ US,” it informed. However, the Group is expected to play a dominant role in developing a hydrogen-centric economy in Oman by 2040. Green hydrogen space is emerging as the biggest potential for the Middle Eastern region as well, as per reports.
“OQ has several large-scale green hydrogen projects already announced with a potential to generate more than 30 GW (Gigawatt) of renewable energy in Oman,” the Group said.
“We are driving over $40 billion worth of investments with partners into these projects and expect them to pass the final investment decision (FID) stage over the next decade. These projects include Hyport Duqm, H2Oman, SalalaH2, and Green Energy Oman,” it informed.