In a major shot in the arm for Oman’s nascent ambitions to foster the growth of a ‘green hydrogen’ economy in the Sultanate, a Belgium firm and its local partners have unveiled plans to set up a large-scale ‘green hydrogen’ project in the Special Economic Zone (SEZ) in Duqm.
The main promoter is DEME Group, a Belgian headquartered conglomerate with international interests in dredging and reclamation, marine engineering, environmental remediation and of late, in renewable energy development.
DEME Concessions, a subsidiary of the Group, announced on Tuesday an “exclusive partnership” with Omani investors to support the development of a “world-leading” green hydrogen plant in Duqm. With a proposed electrolyser capacity estimated between 250 and 500 megawatts (MW), the project will rank among the largest of its kind in the Middle East.
Green hydrogen — billed as a fuel source and energy carrier of the future — is produced when electricity generated by harnessing renewable sources like solar and wind is used to electrolyse water (H2O). Unlike conventional methods, which result in the release of greenhouse-gas causing carbon dioxide (CO2) emissions, green hydrogen is essentially environment-friendly.
Green hydrogen can thus be used as an alternative and decarbonised feedstock for the petrochemical industry, or as a clean energy source for the industry and the mobility sector. Additionally, it can also serve as an energy carrier and temporary storage for (excess) green electricity.
Importantly, the announcement comes on the heels of a landmark initiative by EJAAD — the Sultanate’s innovation powerhouse — to kickstart the formulation of a National Strategy for a Hydrogen Economy in the Sultanate. The Ministry of Oil and Gas, along with leading energy giants, as well as academic and R&D institutions in the Sultanate, are supporting the effort.
That move came just weeks after a first-of-its-kind Oman Hydrogen Centre was formally launched at the German University of Technology in Oman (GUtech). Various experts who addressed the event underlined Oman’s potential to evolve into a $20 billion green hydrogen by 2050.
The ‘Hyport@Duqm’ project is envisaged as a world-scale initiative, according to DEME Concessions. “The facility will significantly contribute to the decarbonisation of the regional chemical industry in Oman, as well as providing green hydrogen and/or derivatives (such as green methanol or ammonia) to international customers in Europe, for example in the Port of Antwerp. The envisaged electrolyser capacity for a first phase is estimated between 250 and 500 MW. Following this first phase, upscaling of the installation is foreseen. The advantage of the location in Duqm is the availability of cheap renewable energy (solar and wind), as well as large, accessible sites (on- and offshore)’’.
As a first step in the delivery of the project, DEME Concessions has commissioned global consulting firm Roland Berger to oversee an in-depth feasibility study that will ascertain customer offtake choices, technology options, electricity feed-in options, hydrogen (derivatives) shipping options and to define the concept and scope of the commercial scale demonstration project.
“The feasibility phase will be followed by the detailed design and engineering, further project development and finalisation of offtake routes and financing. A Final Investment Decision for the commercial scale demonstration project is expected during 2021,” it added.
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