In a significant development for Oman’s green energy sector, a consortium comprising Actis and Fortescue has been awarded the rights to develop, build, own, and operate a large green hydrogen project in the country. The announcement was made during a signing ceremony held in Muscat by Hydrogen Oman SPC (Hydrom), an independent entity established by the Omani government to drive the nation’s green hydrogen strategy.
The consortium emerged as the winning bidder in the second round of a green hydrogen tender process, securing exclusive rights to a prime site designated for the project’s development. Currently in the feasibility stage, the project is expected to involve the construction of approximately 4.5GW of wind and solar renewable energy resources. These resources will power electrolyzers capable of producing up to 200,000 tonnes of green hydrogen annually.
According to HE Eng Salim bin Nasser Al Aufi, Minister of Energy and Minerals and Chairman of Hydrom, Oman’s strategic location between key green hydrogen demand centers in Europe and Asia, coupled with its infrastructure and logistics capabilities, positions it as a favorable location for green hydrogen production. The project aims to cater to local industrial offtakers and export green hydrogen derivatives, such as green ammonia, via the port of Salalah.
Both Actis and Fortescue are recognized leaders in the global green energy space. Actis boasts a track record of developing renewable power projects, managing approximately 21GW of renewable energy capacity to date. Fortescue, on the other hand, is a pioneer in the green hydrogen industry, with multiple projects globally.
The successful bid award reflects Actis and Fortescue’s commitment to driving the transition away from fossil fuels and towards decarbonization. The project is backed by strong demand for offtake, a supportive regulatory environment, and Oman’s prime strategic location.
Moataz Kandil, MENA President at Fortescue, emphasized the strategic partnership’s role in advancing Oman’s position as a leader in green molecules. James Mittell, Director of Energy Infrastructure at Actis, highlighted the project’s alignment with Actis’ sustainability agenda and Oman’s suitability for low-cost green ammonia production.
The consortium has garnered significant interest from prominent lenders, indicating the project’s appeal and bankability. This collaboration between Actis, Fortescue, and the Omani government marks a pivotal step towards Oman’s ambition to become a powerhouse in green energy.
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