Hydrogen block auctions garner strong international interest
Published: 04:05 PM,May 02,2024 | EDITED : 08:05 PM,May 02,2024
Eng Abdulaziz al Shidhani, Managing Director of Hydrom
MUSCAT: Around 200 international companies had registered to participate in the land auction process overseen by Hydrom – the orchestrator of Oman’s green hydrogen industry – underscoring the burgeoning global interest in this clean fuel alternative, according to a key government official.
Eng Abdulaziz al Shidhani, Managing Director of Hydrom, the nation’s hydrogen industry orchestrator, said the award of two additional hydrogen blocks earlier this week – taking the total to 8 to date – marked the “culmination of a journey” that began in October 2022.
“After an initial 18-month period, today we've seen the numbers. The journey has been challenging, as market demand can be unpredictable. The focus on hydrogen is a prime example – this is the second round of bidding. It's a true test of market demand, and we're pleased to see approximately 200 companies registered,” he stated.
Speaking exclusively to the Observer, following this week’s landmark signings, Al Shidhani said the calibre of the companies partnering with Oman in the delivery of the new hydrogen volumes attested to the nation's competitive edge.
The $11 billion investment commitments from the two projects underscore the confidence inspired by Oman's clear, transparent, and objective regulatory framework. This framework has not only acted as a safety net for investors but also attracted interest from entities who initially considered investing elsewhere, in countries boasting similar resources and geopolitical ties, he noted.
Hydrom, spearheading Oman's green hydrogen ambitions, surpassed its initial target of one million tonnes of production by 2030 by signing a remarkable eight agreements. Beyond securing production partnerships, Hydrom has also made significant strides in bolstering supporting sectors. It has established a strategic partnership with Asyad to ensure robust logistical support for the burgeoning hydrogen sector. Additionally, communication channels have been opened with international technology companies, fostering collaboration and potentially localizing parts of the value chain, further strengthening the domestic hydrogen ecosystem.
In the interview, Al Shidhani outlined three key areas of focus that will be instrumental in propelling Oman to the forefront of the green hydrogen revolution: land allocation, ensuring the readiness of supporting sectors, and rigorously monitoring developer commitment. These measures are designed to attract further investment and guarantee the successful takeoff of this groundbreaking industry, he pointed out.
The emphasis on local content within all agreements is a cornerstone of Oman's strategy, the official stressed. Local investment maximizes economic impact, encompassing job creation, skills development through targeted training programs, the establishment of research centers fostering domestic innovation, local procurement to stimulate domestic industries, and the potential localization of various industries within the hydrogen value chain.
The sheer scale of these projects is awe-inspiring – 40 million solar panels, 2,000 wind towers, and a staggering 6,000 wind blades, alongside over 500 electrical substations. This translates to a substantial demand for raw materials – copper, cement, iron – not just for the projects themselves but also for supporting industries, potentially igniting a domestic manufacturing boom, he added.
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Eng Abdulaziz al Shidhani, Managing Director of Hydrom, the nation’s hydrogen industry orchestrator, said the award of two additional hydrogen blocks earlier this week – taking the total to 8 to date – marked the “culmination of a journey” that began in October 2022.
“After an initial 18-month period, today we've seen the numbers. The journey has been challenging, as market demand can be unpredictable. The focus on hydrogen is a prime example – this is the second round of bidding. It's a true test of market demand, and we're pleased to see approximately 200 companies registered,” he stated.
Speaking exclusively to the Observer, following this week’s landmark signings, Al Shidhani said the calibre of the companies partnering with Oman in the delivery of the new hydrogen volumes attested to the nation's competitive edge.
The $11 billion investment commitments from the two projects underscore the confidence inspired by Oman's clear, transparent, and objective regulatory framework. This framework has not only acted as a safety net for investors but also attracted interest from entities who initially considered investing elsewhere, in countries boasting similar resources and geopolitical ties, he noted.
Hydrom, spearheading Oman's green hydrogen ambitions, surpassed its initial target of one million tonnes of production by 2030 by signing a remarkable eight agreements. Beyond securing production partnerships, Hydrom has also made significant strides in bolstering supporting sectors. It has established a strategic partnership with Asyad to ensure robust logistical support for the burgeoning hydrogen sector. Additionally, communication channels have been opened with international technology companies, fostering collaboration and potentially localizing parts of the value chain, further strengthening the domestic hydrogen ecosystem.
In the interview, Al Shidhani outlined three key areas of focus that will be instrumental in propelling Oman to the forefront of the green hydrogen revolution: land allocation, ensuring the readiness of supporting sectors, and rigorously monitoring developer commitment. These measures are designed to attract further investment and guarantee the successful takeoff of this groundbreaking industry, he pointed out.
The emphasis on local content within all agreements is a cornerstone of Oman's strategy, the official stressed. Local investment maximizes economic impact, encompassing job creation, skills development through targeted training programs, the establishment of research centers fostering domestic innovation, local procurement to stimulate domestic industries, and the potential localization of various industries within the hydrogen value chain.
The sheer scale of these projects is awe-inspiring – 40 million solar panels, 2,000 wind towers, and a staggering 6,000 wind blades, alongside over 500 electrical substations. This translates to a substantial demand for raw materials – copper, cement, iron – not just for the projects themselves but also for supporting industries, potentially igniting a domestic manufacturing boom, he added.
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