Hydrom Signs $20 Billion MoUs For Green Hydrogen Projects In Oman

A subsidiary of Energy Development Oman SAOC (EDO), Hydrogen Oman (Hydrom) has signed 3 memorandum of understanding for green hydrogen projects in Oman worth $20 billion.

The agreement was signed in the presence of the Minister of Energy and Minerals and Chairman of the Board of Directors of Hydrom, Eng. Salim Nasser Al Aufi, with bidders from Denmark, Kuwait, Singapore, Oman, the United States of America (USA), and the United Kingdom. Also present were the Minister of Housing and Urban Planning, Dr Khalfan Said Al Shuaili, Minister of Energy and Minerals, Eng. Salim Nasser Al Aufi, and Acting Managing Director of Hydrom, Dr Firas Al Abduwani.

The three projects were signed with the consortia of Amnah, Green Energy Oman (GEO) and BP Oman. The projects are expected to produce around half a million tonnes of green hydrogen annually from over 12 GW of installed renewable energy capacity. All the projects are spread across 320 square kilometers of area in the Al Wusta Governorate.

The first project is awarded to a consortium of Blue Power Partners (BPP), Copenhagen Infrastructure Partners (CIP), and Al Khadra, a subsidiary of Oman’s Hind Bahwan Group. The project will generate 200 KTPA of green hydrogen from 4.5 GW of renewable energy.

The second project is awarded to BP Oman. Once completed, the project is expected to generate 150 KTPA of green hydrogen from 3.5 GW of renewable energy.

The third project was awarded to a consortium of Green Energy Oman (GEO) that includes OQ, Oman Shell, InterContinental Energy, EnerTech, and Golden Wellspring Wealth for Trading (GWWT). The project is anticipated to generate up to 150 KTPA of green hydrogen from 4 GW of renewable energy.

In order to back this endeavour, Hydrom and OQ Gas Networks (OQGN), the sole operator and proprietor of Oman’s natural gas transportation system, have signed a Memorandum of Understanding. The purpose of this MoU is to foster cooperation between the two entities in the advancement of green hydrogen pipeline infrastructure.

The MoU was signed by the Acting Managing Director of Hydrom, Dr Firas Al Abduwani, and the Managing Director of OQGN, Eng. Mansoor Ali Al Abdali.

Furthermore, Energy Development Oman (EDO) entered into a Memorandum of Understanding (MoU) with Siemens Energy, a renowned global energy technology company, in the pursuit of research and development. The primary objective of this agreement is to foster cooperation in the realms of green hydrogen technology, promote innovation, and facilitate the exchange of expertise between the two entities.

The agreement was signed by the Chief Executive Officer of EDO, Eng. Mazin Rashid Al Lamki, and Managing Director of Siemens Energy, Khalid Hadi.

Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals, expressed that Oman has taken significant strides in green hydrogen production, making it a frontrunner among other nations. With a completed regulatory framework, sector structure, investment opportunities, and award mechanisms, Oman is poised to become a leading country in green hydrogen production. Major international companies have shown significant interest in investing in Oman’s hydrogen sector, and the government looks forward to collaborating with partners to establish a strong presence in this promising sector over the next few decades.

Dr. Khalfan Said Al Shuaili, Minister of Housing and Urban Planning, stated that the signing of the Head-Usufruct agreement reinforces Oman’s stable investment environment and global standing in renewable energy development. This agreement aligns with the government’s objective to stimulate investment in the green hydrogen field. Oman has designated over 50,000 square kilometers in the governorates of Al Wusta and Dhofar for green hydrogen projects, which will be awarded in stages.

Eng. Mazin Al Lamki, CEO of EDO, emphasized that these achievements will solidify Oman’s position in the green hydrogen sector. Oman is strategically positioned for green hydrogen production and export due to its abundant renewable resources, existing energy and transport infrastructure, industrial ports, and established international partnerships. The development of the green hydrogen economy presents an opportunity for both Omani and international companies to collaborate, driving local and global energy security, as well as economic diversification. These objectives are in line with EDO’s aim to generate investment opportunities in Oman’s energy sector and maximize financial returns.