Oman’s OQ to study feasibility of producing green fuels

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Oman’s energy firm OQ has signed a memorandum of cooperation with shipping major AP Moller-Maersk, Japan’s Sumitomo Corporation and Muscat-based Asyad Group to study the feasibility of producing and supplying green fuels, state-owned Oman News Agency reported.

The memorandum seeks to discuss the commercial and technical feasibility of producing and supplying green ammonia and green methanol at the ports of Duqm and Salalah for use in port operations and the possibility of exporting them abroad in the future, according to a report by the Muscat Daily.

Issam bin Nasser al Shaibani, vice president of sustainability at Asyad Group, said that the feasibility study will place Oman on the global green fuel map.

He stated that the ports of Duqm and Salalah were chosen to supply green ammonia and green methanol due to the availability of land near the ports and the establishment of existing green hydrogen-related projects near these ports, which will reduce the cost of transporting green fuel.

In addition, OQ’s alternative energy unit signed a memorandum of understanding with Oman-India Fertiliser Company (OMIFCO) to study the feasibility of producing blue ammonia in Sur and its use in OMIFCO’s production operations.

The MoU will also study a plan to achieve a carbon economy through recycling, which will boost national efforts for the diversification of sources of energy.

Last month, Oman’s national hydrogen company Hydrom launched the first round of public auctions of land blocks for developing green hydrogen projects.

Oman has earmarked around 50,000 square kilometres of land for green hydrogen projects over the long-term.

In October, Oman’s Ministry of Energy and Minerals unveiled its ‘Green Hydrogen Strategy’, which envisions an estimated $140 billion in investment in a new low-carbon energy industry.