MUSCAT: The blistering pace at which Oman has gone from incubating the transition to a clean energy future – in a short span of four years or less – has surprised most international experts.
The International Energy Agency (IEA), no less, declared in June that Oman is on track to become the sixth largest exporter of hydrogen globally, and the largest in the Middle East, by 2030.
More recently, the World Economic Forum (WEF) listed Oman among six ‘high-potential’ hydrogen countries in the Middle East and North Africa (MENA) region based on their low-carbon hydrogen readiness. Ranked alongside Oman as ‘high-potential’ hydrogen economies are Morocco, Egypt, Qatar, the Kingdom of Saudi Arabia (KSA), and the United Arab Emirates (UAE).
In characterizing Oman has a ‘high-potential’ hydrogen economy, the WEF report noted: “As of 2023, the country potentially has the most advanced regulatory framework, strategy, and project development policies for hydrogen in the region... The strategy focuses on exporting hydrogen to both Asia and Europe and also includes decarbonization strategies for existing demand representing 1.1 Mtpa. The hydrogen sector is seen as a vital post-oil and gas era opportunity for Oman.”
Agreements signed over the course of the year have culminated in the award of a total of six blocks for green hydrogen development, mainly in Al Wusta Governorate. They include two blocks auctioned by Hydrom, the master-planner and orchestrator of Oman’s green hydrogen industry, and four other blocks firmed up under the ‘Legacy Stream’ of projects conceived prior to the formalization of a regulatory framework. Targeting a massive $38 billion in investments, these six projects will offer a combined renewable electricity capacity of 22.5 gigawatts with the goal of producing 925 kilotonnes per annum of green hydrogen by 2030.
The Observer traces some of the key highlights of 2023 in the clean energy realm:
Royal Decree earmarks land blocks for clean energy
Feb 16: His Majesty Sultan Haitham bin Tarik issues Royal Decree 10/2023, centring on the allocation of land plots for renewable and green hydrogen projects - a critical piece of legislation that will underpin the accelerated implementation of mega-scale green energy projects. It specifies the range of land areas suitable for the purposes of renewable energy and clean hydrogen projects, which will enhance the development of this promising sector, attract investments to it, plan and develop the necessary infrastructure for it, and maintain the competitiveness of green hydrogen production in the Sultanate of Oman.
First three green hydrogen projects announced
June 1: Hydrom has signed three agreements awarding the first green hydrogen projects in Oman. At the same time, the Ministry of Housing and Urban Planning, Ministry of Energy and Minerals and Hydrom signed a Head-Usufruct Agreement, granting land rights for renewable energy and clean hydrogen projects. The total investments in the three projects signed with the consortia of Amnah, Green Energy Oman (GEO) and BP Oman are expected to exceed $20 billion.
Term sheets signed for first Green Hydrogen projects
March 14: In a significant step towards achieving sustainable energy goals, Hydrom signed multiple term sheets with a number of developers in Green Hydrogen projects. They cover six 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.
These developments will require an installed capacity of approximately 15GW of renewable energy in Oman and total expected investments around $20 billion (including shared infrastructure). These projects are expected to provide over 700 thousand tonnes of green hydrogen which would be further processed in local industries and into energy carriers for export.
DEME, OQ team up to certify green hydrogen
May 9: DEME, the Belgian engineering firm specializing in renewable energy, has partnered with OQ Group to establish a pilot project for the certification of green hydrogen. The pilot project will be carried out by Hinicio, a specialized company in the hydrogen sector, and will focus on certifying the hydrogen produced at Hyport Duqm, a green hydrogen plant currently under construction in Duqm. The plant is expected to generate 500 megawatts of electricity through the electrolysis of water, using renewable energy sources like solar and wind power.
OQGN signs MoU with Hydrom on green hydrogen
June 5: OQ Gas Networks (OQGN), the sole transporter of natural gas in the Sultanate of Oman and owner of the natural gas transportation network, has signed a memorandum of understanding (MoU) with Hydrogen Oman (Hydrom), to study the development of green hydrogen network infrastructure in the Sultanate.
Second bid round launch for green hydrogen blocks
June 22: Registrations opened on Thursday, June 22, 2023, for yet another round of bidding for three massive land blocks, covering a total area of 960 sq kilometres, earmarked for green hydrogen projects in Dhofar Governorate in the south of Oman.
Hydrogen carrier visits Muscat
Aug 16: Oman received at Sultan Qaboos Port in Muscat the first liquefied hydrogen tanker in the world, the Japanese ship "Suiso Frontier", which is touring a number of countries in the Middle East.
Potential for Geologic Hydrogen development
Sept 24: The Ministry of Energy and Minerals entered into two Memorandums of Understanding with the American company 'Eden Geopower' and the Omani Earth Sciences Consultancy Centre. These agreements aim to facilitate scientific dialogues to conduct extensive preliminary studies for assessing the potential and opportunities in Geologic Hydrogen exploration. Furthermore, they will identify suitable locations for conducting experimental research in collaboration with the Ministry of Energy and Minerals.
OQ, Asyad, Air Liquid to explore hydrogen fuelling stations
Oct 22: OQ Alternative Energy has signed an agreement with the Ministry of Transport, Communications, and Information Technology, ASYAD Group, Oman Oil Marketing Company, and Air Liquide Group. The goal is to conduct a joint study pilot project on green hydrogen fueling stations in the Duqm Special Economic Zone.
OQGN to explore H2, CO2 networks
Oct 24: Building on its vision to support the development of low-carbon energy infrastructure in Oman, OQ Gas Networks (OQGN) – the newly listed gas transportation company – has announced the signing of a Memorandum of Understanding (MoU) with Belgian-based energy infrastructure group Fluxys to explore cooperation in the establishment of hydrogen and carbon dioxide (CO2) infrastructure projects in Oman.
Pact to study liquid hydrogen supply chain
Dec 3: Oman’s Ministry of Energy and Minerals and Hydrogen Oman (Hydrom) have signed a Joint Study Agreement (JSA) with Port of Amsterdam, Zenith Energy Terminals and GasLog, to collaborate on the development of a liquid hydrogen route to market for green hydrogen produced in the Sultanate of Oman. The agreement underscores the clear ambitions of the partners to make the world’s first commercial scale liquid hydrogen corridor a reality.
SalalaH2 Consortium to build Green Ammonia Project
Dec 12: The SalalaH2 Consortium, comprising Marubeni Corporation; OQ Alternative Energy LLC; Dutco Overseas Limited, a subsidiary of Dutco Group, a conglomerate involved in construction, energy, hospitality and trading; and Samsung C&T Corporation (Korea); signed a Project Development Agreement for a green ammonia project and a Sub-Usufruct Agreement with Hydrom. Under the agreements, the Consortium will conduct detailed studies for the development of the project and the supply chain of green ammonia.
OIA, Siemens Energy to explore electrolyser manufacturing
Dec 12: Hydrom signed a joint MoU with Oman Investment Authority (OIA) and Siemens Energy to explore the development, construction and operation of an electrolyser manufacturing facility in Oman.
Hydrom, Asyad to collaborate on advancing logistics
Dec 12: Hydrom and Asyad Group signed an MoU to collaborate on advancing Oman's logistics sector by supporting innovative green hydrogen projects. The goal is to not only meet but exceed anticipated requirements and global standards, thereby enabling the seamless deployment of hydrogen solutions across diverse industries.
InfraCo incorporated for common infrastructure
Dec 12: Hydrom has announced the incorporation of a new ‘Infra-Company’ to invest in, operate and manage the common infrastructure critical to the smooth operation of Oman’s green hydrogen projects. This infrastructure comprises pipelines for the transportation of ultrapure desalinated water for electricity, potable water and wastewater, and potential hydrogen gas, in addition to electrical networks, specialised storage capacity for hydrogen, ammonia and methanol, and so on. It will be set in place well before the latter ventures come on stream starting in 2029.
New unit to support delivery of hydrogen projects
Dec 16: The Omani government is set to shortly roll out a high-powered ‘Support Unit’ to help smooth the way for international investors preparing to simultaneously implement a raft of mega-scale green hydrogen projects worth billions of dollars over the next several years in the Sultanate of Oman. Mindful that the scale, magnitude, geographical concentration and limited window for delivery of these projects would pose a logistical nightmare for developers, a ‘Delivery Support Unit’ is being assembled by the government, according to Mohsin al Hadhrami, Under-Secretary of the Ministry of Energy and Minerals.
Round 2 of Oman’s hydrogen block auction garners sizable interest
Dec 17: International investor interest in three land blocks offered by the Sultanate of Oman as part of its Round 2 Public Auction, continues to be significant, according to Hydrom. More than 180 companies had submitted their qualifications by last month’s deadline to register their interest in participating in the round. Of this total, around 40 companies will be granted access to an online Request for Qualifications (RFP), some of which will go on to submit firm bids by January 28, 2024, the deadline set by Hydrom for Round 2.
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