As part of the “Hydrom Phase A Round 1” call for projects, a consortium led by ENGIE and POSCO has secured a significant milestone in Oman’s green hydrogen industry. Hydrom, the orchestrator and master planner of the country’s green hydrogen sector, awarded the consortium the land block (Z1-02) in Duqm, spanning an expansive 340 square kilometers. The consortium, including partners Samsung Engineering, Korea East-West Power Co., Korea Southern Power Co., and FutureTech Energy Ventures Company Ltd. (a subsidiary of PTTEP), aims to mobilize Oman’s renewable energy resources through the development of a green ammonia project with a capacity of 1.2 million tonnes per year.
The ambitious project involves the construction of up to approximately 5 GW of new wind and solar capacity, a Battery Energy Storage System (BESS), and a renewable hydrogen plant with a capacity of up to 200 ktpa. The hydrogen will be transported via a dedicated hydrogen pipeline to the Port of Duqm, where it will serve as feedstock for the ammonia production plant. The consortium plans to export 1.2 mtpa of green ammonia to Korea by 2030, aligning with the country’s national decarbonization target of reducing its carbon footprint by 40% by the same year.
The project contract spans 47 years, comprising a seven-year development and construction phase, followed by a 40-year operational period. Construction is projected to commence in 2027, with the first shipment of green ammonia planned for the second half of 2030, signalling a significant contribution to Oman’s low-carbon transition. The consortium will conduct thorough feasibility and technical studies to determine the total capital expenditure required for the project’s successful implementation.
Sébastien Arbola, Executive Vice President in charge of Flex Gen & Retail activities at ENGIE, emphasized the venture’s alignment with the Group’s strategy to accelerate the transition to carbon neutrality. The project will leverage ENGIE’s industrial expertise in developing renewable energies, renewable hydrogen, and flexible assets like batteries. It will significantly contribute to ENGIE’s 2030 ambitions of achieving 4 GW of hydrogen capacity and 10 GW of batteries.
PTTEP, through its subsidiary FutureTech Energy Ventures Co., Ltd. (FTEV), is spearheading PTTEP’s entry into the clean energy sector with its partners based in South Korea and France. PTTEP’s CEO, Mr. Montri Rawanchaikul, expressed the company’s commitment to becoming a low-carbon organization and fostering sustainable growth. The green hydrogen project, expected to commence production in 2030, marks PTTEP’s first significant step into the clean energy business, with a targeted production capacity of approximately 220,000 tons of green hydrogen per year.
The consortium will capitalize on the integrated green hydrogen production, combining renewable energy from solar and wind sources with a planned capacity of approximately 5 GW. The green hydrogen plant will be constructed within the awarded concession area, while the Special Economic Zone at Duqm will house the ammonia production plant, converting the majority of green hydrogen into green ammonia with an annual capacity of 1.2 million tons for export to South Korea. The remaining green hydrogen will be utilized for domestic consumption in Oman.
The project not only reinforces ENGIE’s commitment to accelerate the Gulf Cooperation Council’s low-carbon transition but also supports PTTEP’s strategy to develop future energy and contribute to Oman’s thriving renewable energy sector. With PTTEP’s extensive experience in Oman’s energy business over the past 20 years, the consortium is poised to make significant contributions to the project’s successful development.
This venture reflects Oman’s dedication to driving substantial growth in the green hydrogen sector and positions the country as a key player in the global renewable energy landscape. With the consortium’s expertise, the project is set to catalyze Oman’s transition to a sustainable and low-carbon economy, creating a cleaner and more prosperous future for all.