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Oman: Hydrom announces $11 billion of green hydrogen deals

Hydrom, the state-owned entity overseeing Oman’s green hydrogen development, announced the achievement of its target to deliver over 1 million tonnes per annum (mtpa) of renewable hydrogen. This milestone was reached with the signing of two new projects in Dhofar, collectively valued at $11 billion.

With the addition of these two projects to the six previously awarded in 2023, Oman’s total projected green hydrogen production is expected to reach 1.38 million tonnes per year (mtpa) by 2030, according to a press statement by Hydrom.

Oman has set an ambitious goal to produce 1 to 1.5 million tonnes per annum of green hydrogen by 2030. The recent signings mark the successful completion of Hydrom’s second round of auctions, which attracted over 200 companies competing for the opportunity to develop green hydrogen projects in Oman.

Salim Nasser Al Aufi, Minister of Energy and Minerals and Chairman of Hydrom, commented: “Oman is strategically located between two key green hydrogen demand centers in Europe and Asia. This, combined with our tier-1 infrastructure and logistics capabilities, has enabled us to leverage our first-mover advantage in the global hydrogen industry.”

The first agreement was signed with a consortium consisting of Electricité de France and its subsidiary EDF Renewables (EDF Group), Electric Power Development Co (J-POWER), and Yamna. The project aims to produce approximately 178,000 tpa of green hydrogen by 2030, utilizing around 4.5 GW of wind and solar energy coupled with battery storage and an approximately 2.5 GW state-of-the-art electrolyzer. The produced hydrogen will be supplied to an ammonia plant to be built in the Salalah Free Zone, set to produce 1 mtpa of green ammonia.

The second agreement was signed with Actis, a leading global investor in sustainable infrastructure, and Fortescue, a global integrated green energy, metals, and technology company. This project will involve the construction of up to 4.5GW of wind and solar renewable energy resources to power electrolyzers with the potential to produce up to 200,000 tonnes of green hydrogen per year. This hydrogen will be sold to local industrial offtakers and processed into derivatives, such as green ammonia, for export via the Port of Salalah.

“The rapid pace at which Oman is advancing its green hydrogen sector is remarkable, moving from land identification to international auctions and signing agreements in just two years, and we are proud to be leading it,” said Abdulaziz Said Al Shidhani, Managing Director of Hydrom.

The new hydrogen signings encompass a 682 km2 area of land in total, characterized by average wind speeds ranging from 6.8m/s to 8.3m/s and solar irradiance levels of 2410 w/m2.

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