Hydrom Secures Green Hydrogen Ventures Worth $11 Billion in Dhofar

The Sultanate's leader in green hydrogen initiatives, Hydrom, has unveiled the signing of two fresh green hydrogen projects in Dhofar, totaling $11 billion. These agreements come on the heels of Hydrom's accomplished second round of auctions, which will elevate Oman's overall hydrogen production to 1.38 million tonnes per year (mtpa) by 2030.

In the initial agreement, a consortium comprising Electricité de France S.A. and its subsidiary EDF Renewables (EDF Group), Electric Power Development Co., Ltd. (J-POWER), and YamnaCo Ltd (Yamna) signed. The second agreement involved Actis, a prominent global investor in sustainable infrastructure, and Fortescue, a global integrated company in green energy, metals, and technology.

Leading the signing ceremony, Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals and Chairman of Hydrom, remarked, "Oman's strategic positioning between Europe and Asia, coupled with our top-tier infrastructure and logistical capabilities, has allowed us to capitalize on our first-mover advantage in the global hydrogen sector."

Continuing, he emphasized Oman's abundance of renewable natural resources, along with its advantageous geopolitical location, investor-friendly policies, and forward-thinking energy transition strategies, rendering it highly conducive to green hydrogen production. Consequently, Hydrom's second round of auctions garnered significant global attention, with over 200 companies expressing interest in bidding for the opportunity to develop integrated green hydrogen projects. This positions Oman on track to emerge as one of the foremost exporters of low-carbon hydrogen by 2030.

The initiative involving EDF Group, J-POWER, and Yamna aims to generate around 178,000 tonnes per annum (tpa) of green hydrogen by 2030. This will be accomplished through the utilization of approximately 4.5 GW of wind and solar energy, complemented by battery storage, and an advanced 2.5 GW electrolyzer. The resulting hydrogen will be supplied to an ammonia plant slated for construction in the Salalah Free Zone, which is projected to yield 1 million tonnes per annum (mtpa) of green ammonia.

The collaboration between Actis and Fortescue will entail the construction of renewable energy resources, comprising up to 4.5GW of wind and solar capacity. These resources will energize electrolyzers capable of producing up to 200,000 tonnes of green hydrogen annually. The produced hydrogen will be sold to local industrial consumers and transformed into derivatives like green ammonia for export through the Port of Salalah. Leveraging cutting-edge green hydrogen technology, these projects will pool resources and expertise to foster a sustainable and localized green hydrogen economy in Oman.

"The swift progress seen in Oman's green hydrogen sector is truly remarkable, transitioning from land identification to international auctions and agreement signings within a mere two years, and we take great pride in spearheading this endeavor," remarked Eng. Abdulaziz Said Al Shidhani, Managing Director of Hydrom. " we celebrate yet another significant milestone in this journey as we allocate two projects to our new partners. Alongside the initial wave of green hydrogen projects announced, Oman is boldly advancing towards its ambitious target of producing 1 to 1.5 million tonnes per annum of green hydrogen by 2030."

The recent hydrogen agreements encompass a total land area of 682 km2, boasting average wind speeds ranging from 6.8m/s to 8.3m/s and solar irradiance levels of 2410 w/m2. Coupled with the six projects previously awarded in 2023, Hydrom is steadfastly progressing towards Oman's 2030 production objectives. This endeavor further underscores Oman's potential as a pivotal global provider of low-carbon hydrogen.

Reflecting on this achievement, Luc Koechlin, CEO Middle East of EDF, remarked, "The EDF Group, along with its subsidiary EDF Renewables, J-POWER, and Yamna, are privileged to commence this exhilarating journey. We are enthusiastic about contributing to the advancement of the green hydrogen sector in the Sultanate. We extend our gratitude to Hydrom for entrusting us with the opportunity to execute such a groundbreaking project, pivotal to Oman's sustainability agenda and the worldwide energy transition."

Moataz Kandil, MENA President at Fortescue, and James Mittell, Director of Energy Infrastructure at Actis, emphasized, "Actis and Fortescue align closely with our goals to decarbonize and spearhead a new era of green energy globally. We share a unified vision regarding the significant role that green hydrogen and green ammonia will play in shaping a sustainable future. Oman, boasting abundant natural resources, stands out as one of the prime locations for cost-effective green ammonia production, owing to its ample land availability, robust port infrastructure, and supportive regulatory framework conducive to nurturing this burgeoning green industry. The partnership between Hydrom, Actis, and Fortescue is strategically positioned to propel the implementation of a substantial green hydrogen initiative in Oman. We eagerly anticipate further collaboration with the Omani government and local community to advance this endeavor."

Established in 2020, Hydrom was tasked with spearheading the Sultanate's green hydrogen sector. The company has allocated over 2,300km2 of land for large-scale green hydrogen production, out of the 50,000km2 designated to it. With investment commitments surpassing $49 billion, Hydrom's hydrogen strategy forms a crucial component of a comprehensive energy plan aimed at providing sustainable, secure, and affordable energy to Oman. This initiative also aims to foster economic growth through industry localization and diversification. Recognizing green hydrogen as a pivotal tool for global decarbonization, Hydrom is committed to facilitating Oman's journey towards achieving its net-zero commitment by 2050.