RIYADH: Oman’s Hydrom has signed agreements worth $10 billion to develop two new green hydrogen production projects with a consortium of South Korea’s Posco and French firm Engie, and Hyport Duqm initiative, according to the country’s state news agency.
The new projects will be located in the Al-Wusta governorate, Oman News Agency said.
Following the previous award of three projects earlier this month, Oman has in total awarded five large-scale green hydrogen projects, representing a total investment of more than $30 billion and with a total expected production of 750,000 tons per annum.
The contracts tie into Oman’s plan to produce more than 1 million tons per annum of green hydrogen by 2030, increasing to 8 million by 2050.
This will involve a cumulative investment value of $140 billion.
Commenting on the deals, Oman’s Minister of Energy and Minerals Salim bin Nasser Al-Aufi said: “We are pleased to witness the signings of these new agreements with such prestigious international companies.
“The fast-paced efforts behind the announcement of these new projects reflect Oman’s commitment to reinforce its leading position in the global green hydrogen sector in line with its energy transformation strategy.”
During the event, Hydrom also launched the second bid round of its auction process, which provides companies with the opportunity to submit investment proposals to develop more large-scale green hydrogen projects,
This round will focus on land blocks in the governorate of Dhofar, and the auction is set to conclude by the end of the first quarter of 2024.
Al-Aufi said this second bid round would further help Oman hit its target of net-zero carbon emissions by 2050.
He added: “This aligns with our ambitious plans to establish Oman as one of the world’s largest exporters of green hydrogen by 2030.
“We possess valuable natural resources and geographical features that allow us to spearhead this promising sector and capitalize on its potential as the energy source of the future.”
Abdulaziz Al-Shidhani, managing director of Hydrom, said his company conducted round one of the auctions in record time, and added: “We are proud of what we have accomplished so far towards developing the green hydrogen sector in the Sultanate of Oman.
“The signing of these agreements reflects Oman’s commitment towards stimulating the growth of its green hydrogen sector and cementing its leading position regionally and globally.”
Hydrom’s three deals signed earlier this month were with a consortium of Amnah, Green Energy Oman and BP Oman.
The total investment from those contracts is expected to exceed $20 billion, with the developments projected to yield a total production capacity of 500,000 tons of green hydrogen per annum.
