Hydrom Secures $20 Billion Deals to Produce 500,000 MTPA of Hydrogen for Export, Steel & Ammonia
- 05-Jun-2023 3:24 PM
- Journalist: Sasha Fernandes
Oman: A $20 billion investment is needed to construct green Hydrogen projects, according to agreements struck by the Omani Hydrogen company Hydrom. With the Amnah consortium, the Green Energy Oman alliance, and BP Oman, three memoranda of agreement were inked. It is anticipated that the projects will produce 500,000 metric tonnes of green Hydrogen annually from a combined capacity of more than 12 GW of renewable energy.
The declaration from Oman comes as Middle Eastern nations increase their investments in renewable energy as they work to move away from economies based on fossil fuels. Last month, Saudi Arabia's NEOM Green Hydrogen reached financial closing on a $8.4 billion green Hydrogen project that will use up to 4GW of solar and wind energy to integrate to manufacture 600 metric tonnes of carbon-free Hydrogen per day in the form of green Ammonia.
In the same month, Airbus and Masdar of the United Arab Emirates signed a contract to assist the advancement of direct air capture, green Hydrogen, and sustainable aviation fuel (SAF) technology. By 2030, Hydrom itself plans to manage six or more Hydrogen projects, investing an estimated $30 billion and producing at least 1 million metric tonnes of green Hydrogen annually.
The BP Oman project, according to news reports, will generate 150,000 metric tonnes of green Hydrogen annually for export and Ammonia manufacturing. 3.5 GW of installed renewable energy capacity will be present on site.
The Green Energy Oman Alliance, a partnership between OQ, Oman's integrated energy company, Oman Shell, Kuwaiti energy investor EnerTech, green Hydrogen expert InterContinental Energy, and Golden Wellspring Wealth, won the project. It has the potential to produce up to 150,000 metric tonnes of green Hydrogen and its derivatives annually from 4 GW of installed renewables capacity.
The largest project of the three was won by the Amnah consortium, a global alliance of the Danish renewable energy investor Copenhagen Infrastructure Partners, the solar and wind energy specialist Blue Power Partners, and Al Khadra, a division of the Oman-based Hind Bahwan Group.
The collaboration will use installed renewable energy capacity of 4.5 GW to produce 200,000 metric tonnes of green Hydrogen annually. The planned green steel facilities will be built in the special economic zone at the Port of Duqm on Oman's Arabian Sea coastline, and they will be fed with green Hydrogen from the Amnah consortium.
The consortium is confident that their project will be revolutionary. Partner at Copenhagen Infrastructure Partners, Karsten Plauborg. Nothing comparable in the history of renewable energy has ever been built on this scale. Also need to have humility regarding the work that lies ahead. Must be diligent in this situation and cannot leave any stone unturned.
