Energy

Oman signs green hydrogen deals worth $20bn

March 15, 2023

Hydrom was launched in 2022 to accelerate the development of Oman's green hydrogen sector

Deals with countries including Germany, India, Japan, the UAE and UK
Green hydrogen is produced CO2-neutral through water electrolysis
Global hydrogen production market valued at $130bn last year

Hydrom, a subsidiary of Energy Development Oman, has signed six deals worth $20 billion to invest in green hydrogen projects across the sultanate.

The agreements, which span seven years, were inked with developers from Belgium, Germany, India, Japan, Kuwait, the Netherlands, Singapore, the UAE and the UK.

The production capacity of the projects will hit 15 gw of electricity, built on approximately 1,500 sq km in the southern govenornates of Al Wusta and Dhofar.

Oman seeks proposals for large-scale green hydrogen projects

The agreements include contracting for 47 years – seven years for developing and establishing and then 40 years for operating the projects.

They include two projects for BP Alternative Energy Investments Limited in Duqm and Dhofar. The projects combined will have an annual production capacity of 3.3 gw of electricity and 150,000 metric tonnes of hydrogen.

The agreements also include the Green Energy Oman project, the SalalaH2 project and the Hyport Duqm project, which will have an annual production capacity of 2 gw of electricity and 70,000 metric tonnes of hydrogen.

Finally, the Green Hydrogen and Chemicals SPC will produce 1 gw of electricity and 38,000 metric tonnes of hydrogen each year.

Salim Nasser Al Aufi, minister of energy and minerals and chairman of Hydrom’s board of directors, said he expects green hydrogen to be produced in Oman between 2028 and 2030, for local use and for exporting.

Green hydrogen is the term used to describe hydrogen produced on a CO2-neutral basis through the electrolysis of water.

The GCC has competitive advantages in the global green hydrogen economy, including solar and wind resources, financial capabilities and export potential.

“Not only does the region have connectivity with developed economies in Europe, but a network of ports and pipeline infrastructure provides the region access to markets in Asia and Africa,” according to a recent report by consulting firm Frost & Sullivan.

Oman has committed to reach net zero carbon emissions by 2050.

Last September OQ Gas Networks, which operates Oman’s 4,000km long gas pipeline system, announced plans to repurpose it to transport green hydrogen.

In December Oman and Paris-based International Energy Agency (IEA) then said they were working on three joint green hydrogen projects in the sultanate.

The global hydrogen production market was valued at $130 billion last year, according to the World Bank, and is estimated to grow by up to 9.2 percent per year until 2030.

The hydrogen colour code

Green hydrogen is the term used to describe hydrogen that is produced on a CO2-neutral basis through the electrolysis of water.
Turquoise hydrogen is created by a thermal process in which natural gas is broken down with the help of methane pyrolysis into hydrogen and solid carbon.
Blue hydrogen is generated from the steam reduction of natural gas.
Grey hydrogen is obtained by steam reforming fossil fuels such as natural gas or coal.
Yellow hydrogen refers to hydrogen production from a mixture of renewable energies and fossil fuels.
Sometimes other colours are ascribed to hydrogen, based on how it is produced. For red, pink and violet hydrogen, the electrolysers are driven by nuclear power.
Hydrogen that is merely a waste product of other chemical processes is referred to as white hydrogen, while the use of coal as a fuel produces brown hydrogen.