According to a project official, foreign direct investment is expected to be attracted to a major green hydrogen project in the Sultanate of Oman’s south. It is estimated that the project will bring in $6.5 billion in foreign direct investments.
Eng Siddiqa Al Lawati, Project Lead, stated that the H2Oman – one among half a dozen Legacy Initiatives unveiled before the official launch of Oman’s National Hydrogen Strategy in the month of October – will bring about significant social, economic, and environmental benefits.
Siddiqa, who is part of the Alternative Energy Unit at OQ, Omani Energy Group, stated that the project would also include an In-Country Valu (ICV) component.
H2Oman is supported by a consortium that includes OQ Group of Oman, ACWA Power, a global energy and water service group, OQ Group of Oman, and Air Products, based in the USA.
The project is planned for Dhofar Governorate. It will produce approximately 1.1 million tonnes per annum of green ammonia based on 3GW of solar- and wind-based renewables as well as 2GW of electrolyser capacities. The project will also include battery storage.
H2Oman, which is a futuristic city in the northwest part of Saudi Arabia, will benefit from a similar-sized green hydrogen scheme. This will be a significant advantage.
The unique thing about the H2Oman project is that its partners are working together to develop a similar project in NEOM, Saudi Arabia. Siddiqa stated that H2Oman’s project will benefit from the lessons learned. This includes project planning, execution, and technical design.
H2Oman is expected to attract around $6.5 billion in foreign direct investment over the lifetime of the project, according to the Project Lead.
As it stands now, 29% of the total project capex will be procured locally and 53% of the opex for the project’s 30-year lifetime will be local. This is based on the current market situation. She stated that despite the market’s appetite and with minimal investment, it would be possible to scale up the capex to 9% to be spent in Oman.
The Project Lead stated that 15,000 jobs could be created during construction, and 330 jobs once H2Oman is operational.
