Oman signs green hydrogen project agreements worth $20 billion
Published: 03:03 PM,Mar 14,2023 | EDITED : 07:03 PM,Mar 14,2023
Hydrogen Oman (Hydrom), a subsidiary of Energy Development Oman (EDO), signed multiple binding green hydrogen project agreements worth $20 billion yesterday in Muscat.
Hydrom Chairman Eng Salim bin Nasser al Aufi, who is also Minister of Energy and Minerals, stated, “We are delighted to sign these binding commercial term sheets with the first green hydrogen projects developers in our journey towards decarbonization. Today we are marking the first real signatures of term sheets which actually puts a lot discussions we have had over the last year and half in real action.” Al Aufi said the the Sultanate of Oman has taken several bold steps following His Majesty’s endorsement of the Net Zero target by 2050. “While these agreements form the first testimony of our success towards decarbonization, we look forward to signing more agreements once we receive the results of the first public auction round that is currently being conducted by Hydrom,” he stated.
The green hydrogen agreements signed today include 6 projects located in the proximity of Duqm or Salalah ports: BP Alternative Energy Investments Limited (for a project in Duqm and another in Dhofar), Green Energy Oman (GEO), Green Hydrogen and Chemicals SPC (owned by ACME), Hyport Duqm consortium and SalalaH2 consortium.
The projects, which have been initially signed prior to the establishment of a clean hydrogen regulatory framework, have been dubbed as “Legacy Initiatives”.
Director General of Renewable Energy and Clean Hydrogen at the Ministry, Eng Abdulaziz al Shidhani commented: “Today’s milestone is another step to deliver on Oman’s green hydrogen strategy announced on 23rd October last year. We witnessed today commitments made by key developers coming from Belgium, Japan, UK, Netherlands, India, UAE, Kuwait, Singapore, Germany, and Oman.”
Dr Firas al Abduwani, Acting Managing Director of Hydrom, shared: “The Legacy Initiatives have followed Hydrom’s process since its inception and agreed to the main commercial principles set out in the public auction which enables fair and transparent allocation of lands. We are looking forward to closing the final forms of agreements soon with our partners. We will also begin with our bid evaluation process on the public auction to deliver our promise to the Government.” Commenting on the signing ceremony, Eng Mazin al Lamki, Energy Development Oman CEO stated: “Oman is delighted to see the Legacy Initiatives sign the agreements, which are the result of long and hard work from both sides, and marks an important milestone for Oman as a leading green hydrogen hub”.
Hydrom Oman launched its first public auction for lands in November 2022 and expects to receive bids by March 15, followed by announcement of the winners towards the end of April 2023.
Hydrom Chairman Eng Salim bin Nasser al Aufi, who is also Minister of Energy and Minerals, stated, “We are delighted to sign these binding commercial term sheets with the first green hydrogen projects developers in our journey towards decarbonization. Today we are marking the first real signatures of term sheets which actually puts a lot discussions we have had over the last year and half in real action.” Al Aufi said the the Sultanate of Oman has taken several bold steps following His Majesty’s endorsement of the Net Zero target by 2050. “While these agreements form the first testimony of our success towards decarbonization, we look forward to signing more agreements once we receive the results of the first public auction round that is currently being conducted by Hydrom,” he stated.
The green hydrogen agreements signed today include 6 projects located in the proximity of Duqm or Salalah ports: BP Alternative Energy Investments Limited (for a project in Duqm and another in Dhofar), Green Energy Oman (GEO), Green Hydrogen and Chemicals SPC (owned by ACME), Hyport Duqm consortium and SalalaH2 consortium.
The projects, which have been initially signed prior to the establishment of a clean hydrogen regulatory framework, have been dubbed as “Legacy Initiatives”.
Director General of Renewable Energy and Clean Hydrogen at the Ministry, Eng Abdulaziz al Shidhani commented: “Today’s milestone is another step to deliver on Oman’s green hydrogen strategy announced on 23rd October last year. We witnessed today commitments made by key developers coming from Belgium, Japan, UK, Netherlands, India, UAE, Kuwait, Singapore, Germany, and Oman.”
Dr Firas al Abduwani, Acting Managing Director of Hydrom, shared: “The Legacy Initiatives have followed Hydrom’s process since its inception and agreed to the main commercial principles set out in the public auction which enables fair and transparent allocation of lands. We are looking forward to closing the final forms of agreements soon with our partners. We will also begin with our bid evaluation process on the public auction to deliver our promise to the Government.” Commenting on the signing ceremony, Eng Mazin al Lamki, Energy Development Oman CEO stated: “Oman is delighted to see the Legacy Initiatives sign the agreements, which are the result of long and hard work from both sides, and marks an important milestone for Oman as a leading green hydrogen hub”.
Hydrom Oman launched its first public auction for lands in November 2022 and expects to receive bids by March 15, followed by announcement of the winners towards the end of April 2023.