An international consortium has signed a deal to develop a green hydrogen and green ammonia project in Oman’s Salalah Free Zone (SFZ).
The joint development agreement (JDA), which has been signed by the alternative energy business unit of OQ, Marubeni Corporation, Linde and Dutco, will target the production of up to 1,000 tons per day of green ammonia, using OQ’s existing plant in Salalah.
Named ‘SalalaH2’, the project will see an electrolysis facility with a capacity of up to 400MW constructed to produce green hydrogen. While approximately 1GW of solar and wind energy, produced either by existing or new facilities, will be used to power the electrolyser.
Dr. Salim Al Huthaili, CEO of Alternative Energy at OQ, said: “The potential of low carbon hydrogen production is promising in Oman and this partnership reflects OQ’s, and our shareholder OIA’s (Oman Investment Authority) deep commitment towards maximising value and diversifying Oman’s economy in line with Vision 2040.”
Both Abu Dhabi and Saudi Arabia are leading a regional push to expand hydrogen and ammonia output as the OPEC members seek to leverage their customer relations and supply chains to sell the fuel.
Saudi Aramco has said it aims to have a “large share” of the blue hydrogen market, but doesn’t expect to see significant volumes before around 2030.
“Blue” fuels are the result of a production process that captures the carbon dioxide byproduct for storage or reuse. That compares with “gray” fuels, when the carbon is emitted, and “green”, which are made from renewable energy such solar power that create no emissions.
Tariq Baker, vice chairman, Dutco group of companies, said: “The diversified and unique set of global capabilities of the members of this consortium will greatly contribute to making the SalalaH2 project a showcase project that will allow Oman to position itself as a global player in the production and export of green hydrogen/green ammonia.”
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