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Oman signs two green hydrogen deals worth $10bn

Oman News Agency
The Posco-Engie consortium is likely to produce more than 200 KTPA of green hydrogen by 2030
  • Deals with Posco-Engie and Hyport Duqm consortiums
  • Country has awarded five hydrogen projects in total
  • Total hydrogen investment to reach $33bn

Hydrom, a subsidiary of state-owned Energy Development Oman, has signed agreements worth $10 billion to develop two new green hydrogen production projects.

The deals were signed with the Posco-Engie and Hyport Duqm consortiums, state news agency Oman News Agency reported.

The projects, located in the Al Wusta governorate, are expected to have a total production capacity of 250 kilogram-tonnes per annum (KTPA) from more than 6.5 GW of installed renewable energy capacity at the sites.

The Posco-Engie consortium is likely to produce more than 200 KTPA of green hydrogen by 2030, utilising over 5.2 GW of combined wind and solar energy to produce and export ammonia.

The Hyport Duqum consortium aims to generate more than 50 KTPA of green hydrogen by 2029 in the first phase.

Overall, Oman has awarded five large-scale green hydrogen projects, with a total investment of more than $30 billion and a total production of 750 KTPA.

Hydrom will also launch the second bidding round of its green hydrogen auction process, offering up to three land blocks in Dhofar by the end of the first quarter 2024.

In addition, the company will finalise negotiations with companies that signed commercial term sheets in March, expecting to complete full agreements before year-end.

Oman needs a cumulative investment of around $33 billion to scale renewable hydrogen production to one million tonnes by 2030.

The sultanate is on track to become the sixth-largest exporter of hydrogen globally and the largest in the Middle East by 2030, according to an analysis by the Paris-based International Energy Agency (IEA) of the current global project pipeline.

Last year Oman announced a target to achieve net zero emissions by 2050 and began reducing fossil fuel use in its domestic energy mix.

The Gulf state aims to produce at least one million tonnes of renewable hydrogen a year by the end of the decade, up to 3.75 million tonnes by 2040 and up to 8.5 million tonnes by 2050.