Oman’s Hydrom signs green hydrogen projects worth $11bn

Oman’s Hydrom has signed agreements worth $11bn to develop two new green hydrogen production projects with the Electricité de France (EDF Group) consortium as well as Actis and Fortescue, according to state news agency, Oman News Agency.

The signings follow the completion of Hydrom’s second round of auctions bringing the total hydrogen production in the Sultanate to 1.38 million tonnes per year (mtpa) by the end of the decade.

“Oman is strategically located between two key green hydrogen demand centres in Europe and Asia. This, in addition to, our tier-1 infrastructure and logistics capabilities has enabled us to leverage our first-mover advantage in the global hydrogen industry,” said Salim Nasser Al Aufi, the Minister of Energy and Minerals and chairman of Hydrom.

The project with the EDF Group consortium seeks to produce approximately 178,000 tpa of green hydrogen by 2030, using around 4.5 gigawatts (GW) of wind and solar energy coupled with battery storage and an estimated 2.5 GW electrolyser.

The hydrogen from the facility will be supplied to an ammonia plant to be built in the Salalah Free Zone and set to produce one mtpa of green ammonia.

Similarly, the project with Actis and Fortescue will involve the construction of up to 4.5GW of wind and solar renewable energy resources that will power electrolysers with the potential to produce up to 200,000 tonnes of green hydrogen annually.

The hydrogen will be sold to local industrial off-takers, as well as processed into derivatives such as green ammonia for export.

Last June, Hydrom signed agreements worth $10bn to develop two new green hydrogen production projects with the POSCO-ENGIE consortium and the Hyport Duqm consortium. The hydrogen projects are located in the Al Wusta governorate.

Founded in 2020, Hydrom is spearheading Oman’s green hydrogen strategy and has awarded more than 2,300 square km of land for large-scale green hydrogen production. The company has secured investment commitments worth $49bn, as part of a broader strategy to deliver sustainable energy and drive economic growth.