MUSCAT: OQ Alternative Energy, the green energy investment unit of OQ Group, says it has plans to develop a portfolio of renewable energy projects with a total capacity of around 2 gigawatt (GW) to support the clean energy needs of Oil & Gas companies, as well as industrial zones, operating in the Sultanate of Oman.
According to a top official of the unit, this capacity is in addition to an estimated 30 GW of renewable energy schemes planned for development by OQ Alternative Energy (along with international partners) to power an array of large-scale green hydrogen projects being prepped for implementation over the next couple of decades.
“(..) OQ Alternative Energy is (..) working on developing several similar projects, including a project pipeline of 2 GW by the end of this decade, to supply clean energy to other oil and gas operators and Oman’s industrial clusters,” said Najla al Jamali (pictured), Chief Executive – OQ Alternative Energy.
The proposed renewable energy projects are in keeping with OQ’s commitment to support the decarbonisation of the Oil & Gas industry, among other sectors of the national economy, Al Jamali said.
“In addition to our clean energy portfolio, and our green hydrogen projects in the pipeline, we are continuously exploring new and innovative ways to reduce and manage our carbon footprint,” the Chief Executive noted.
“Given that CO2 and other greenhouse gases are released from burning hydrocarbon fuels, we see projects such as low-carbon hydrogen, wind, solar and Carbon Capture Usage and Storage (CCUS), as the future of Oman’s energy landscape,” Al Jamali added in a recent interview featured in ‘Renewables Now’, a leading portal for business news and market intelligence on the global renewables industry.
Further, as part of the decarbonisation of its own sizable upstream hydrocarbon and petrochemicals assets, OQ is firming up plans to develop a pair of solar PV based to provide green energy for these projects. The two assets in question are Liwa Plastics, a multibillion-dollar polymers plant located in Sohar Port, and the Bisat oilfield in OQ’s wholly operated Block 60 in central Oman.
“Liwa Solar Power (LSP) and Block-60 Solar are progressing as scheduled with FIDs (final investment decisions) and commercial operation dates forthcoming. These projects shall provide clean energy to Liwa Plastics Industrial Complex (LPIC) in Suhar and Bisat field in block-60, respectively,” Al Jamali stated.
But it is OQ’s strategic investments in green hydrogen projects – valued at around $40 billion – that continue to take centre-stage at the Alternative Energy Unit. Powered by around 30 GW of renewable capacity, these projects will account for a sizable proportion of Oman’s targeted annual production of 1 million - 1.25 million tonnes of green molecules by 2030, the Chief Executive noted.
Notable among these are Hyport Duqm supported by DEME Group, the mega-scale Green Energy Oman (GEO) project powered by 25 GW of solar and wind farms, and SalalaH2 project in partnership with Marubeni, Linde and Dutco.
“We expect the investments we are driving into these projects to pass the final investment decision (FID) stage over the next few years (before 2030), with advanced projects expected to reach FID around that same period,” said Najla.
“These strategic green hydrogen projects are expected to be nonrecourse project financed and thus will require an off-take contract prior to FID. Today, OQ Alternative Energy, with OQ’s trading arm (OQT) is evaluating potential markets and opportunities,” she added.
Oman Observer is now on the WhatsApp channel. Click here
