Hydrom signs 3 agreements on awarding the first green hydrogen projects in Oman

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AK&M 01 June 2023 18:42

Hydrom has signed 3 agreements on the first green hydrogen projects in Oman, the Ministry of Energy and Minerals of Oman reported.

The Ministry of Housing and Urban Planning, the Ministry of Energy and Mineral Resources and the Hydrometeorological Center signed an Agreement on the use of the parent company, granting land rights for renewable energy and clean hydrogen projects.

As part of Oman's ongoing initiatives to promote the development of its hydrogen sector, Hydrogen Oman SPC (Hydrom), a subsidiary of Energy Development Oman SAOC (EDO), has signed 3 agreements to provide the first sites for green hydrogen in Oman. 

The signing of these agreements marks another important milestone on the Sultanate's path to becoming a global center for the production of green hydrogen.

The total volume of investments in three projects signed with the consortia Amnah, Green Energy Oman (GEO) and BP Oman is expected to exceed $20 billion/

It is expected that these contracts will provide a total production capacity of 0.5 million tons of green hydrogen per year out of more than 11.5 GW of installed renewable energy capacity at three sites, each covering an area of 320 square kilometers in Al-Wusta province.

The first of the two blocks (Z1-01) in an open auction held in November last year was transferred to a consortium of Copenhagen Infrastructure Partners (CIP), Blue Power Partners (BPP) and Al Khadra, part of the Oman Hind Bahwan Group.

The consortium will produce about 200 thousand tons per year of green hydrogen from 4.5 GW of installed renewable energy capacity for the planned plants for the production of environmentally friendly steel located in the port of Dukm, in the SEZAD.

In addition, a second project was signed with BP Oman to develop green hydrogen for the production and export of ammonia.

The expected annual production volume for this project is 150 thousand tons per year of green hydrogen from 3.5 GW of installed renewable energy capacity in Block Z1-03.

In addition, a third project was signed with the Green Energy Oman (GEO) consortium to develop green hydrogen for the export of ammonia. The consortium includes Oman's united energy company OQ, Shell Oman, Kuwaiti state energy investor EnerTech (ETC), InterContinental Energy (ICE) and Golden Wellspring Wealth for Trading (GWWT).

It is expected that this project will produce 150 thousand tons of green hydrogen per year from 4 GW of installed renewable energy capacity in block Z1-04.

During the event, an agreement was signed between the Ministry of Housing and Communal Services and Urban Planning, the Ministry of Energy and Mineral Resources and the Hydro Division on granting Hydrom land rights for renewable energy and clean hydrogen projects in accordance with Royal Decree 10/2023, issued on February 16, 2023.

During the event, Hydrom announced the creation of an Advisory Board to oversee the development of the common utility Infrastructure, organized by Hydrom in collaboration with leading developers of green hydrogen projects, national utility operators and international developers of green hydrogen infrastructure.

In support of this initiative, a Memorandum of Understanding was signed between Hydrom and OQ Gas Networks (OQGN), the exclusive operator and owner of Oman's natural gas transportation system. The agreement is aimed at establishing cooperation between the parties in the development of environmentally friendly hydrogen pipelines.

In addition, Energy Development Oman (EDO) has signed a Memorandum of Understanding in the field of research and development with Siemens Energy, the world's leading company in the field of energy technologies. This agreement is aimed at establishing cooperation in the field of environmentally friendly hydrogen technologies, innovations and exchange of experience.

The Sultanate promises to achieve zero carbon emissions by 2050 by implementing a national strategy for green hydrogen, revising the regulatory framework and formulating the necessary policies to promote green energy conversion projects. All this is aimed at achieving the strategic goals of Oman Vision 2040.

To spearhead the country's ambitious green hydrogen strategy, the government has established Hydrogen Oman SPC (Hydrom), a fully independent subsidiary of Energy Development Oman SAOC. Hydrom, regulated by the Ministry of Energy and Minerals (MEM), acts as the general organizer and general planner of the green hydrogen sector in Oman.

Its mandate includes defining public land plots, structuring large-scale green hydrogen projects, managing the distribution process among developers, and promoting the development of shared infrastructure and interconnected ecosystem industries and centers.