Muscat: The Ministry of Energy and Minerals is in the process of appointing a think tank to promote Oman as a hub for production and export of green hydrogen, a senior ministry official said.

“It will assess and study the existing legislations related to the sector, investment and its adequacy in a bid to boost opportunities in the sector. It will also determine the need for further legislation, and if needed, will make special laws to make Oman a global clean hydrogen hub,” Eng. Abdulaziz Said Al Shedhani, Director General of Renewable Energy and Hydrogen at the ministry, said.

He further said the government is seeking to attract foreign direct investments (FDI) in the green hydrogen sector, adding that there is a good demand for investments.

The ministry is working to unify efforts with other parties concerned for investments, appropriate policies, legislations and regulatory framework for this vital sector, Al Shedhani added.

Key resources
Oman seeks to be a major player in the production of green hydrogen, thanks to the presence of key resources for its production, including solar and wind energy and adequate lands.

“With Oman’s extensive experience in energy production and export, the country is now positioning itself (in the sector) due to its strategic location and centrality to markets, global trade routes and its relations worldwide. All these will contribute immensely to make the Sultanate of Oman an important hub in the production and export of green hydrogen,” he said.

Realising that partnership is necessary to achieve this goal, the Ministry of Energy and Minerals, in August 2021, established a national alliance for green hydrogen (branded as Hy-Fly) to place Oman on the map for production of green hydrogen.

The alliance includes 13 major institutions across public and private sectors that will support and facilitate local production, transportation, utilisation and export of hydrogen in line with the energy diversification plans under Oman Vision 2040.

On 13 March, 2022, His Majesty Sultan Haitham bin Tarik issued instructions, while presiding over the Council of Ministers’ meeting, for accelerating the procedures for regulation of green hydrogen sector and developing the necessary legal frameworks and policies for the growth of this sector, allocation of technical sites, conduct of studies for the same and establishing a directorate concerned with clean energy and hydrogen energy within the organisational structure of the Ministry of Energy and Minerals, as well as the establishment of a company to develop this sector.

Hyport Duqm project
The Director General of Renewable Energy and Hydrogen at the Ministry of Energy and Minerals said there are several existing projects in this field which are in various stages of development.

Among the important projects in the Sultanate of Oman at present is the Hyport Duqm project to produce green hydrogen.

It is one of the strategic projects being developed in partnership between the OQ group and the Belgian DEME Group.

The Hyport Duqm project is planned at the site allocated for alternative energy within the Special Economic Zone at Duqm (Sezad) in an area of about 150 square kilometres where a wind power plant and a solar power plant will be established with a joint capacity of 1.3GW, in expandable phases.

The Hyport Duqm project authorities have completed the installation and operation of four wind masts for meteorology and two solar meteorological stations on site.

The step aims to ensure the promising and distinct potentials of Duqm throughout the year in the field of solar and wind energy generation, and then start establishing a plant to produce green hydrogen and green ammonia.

The project comes as part of Oman’s strategy to develop Al Wusta Governorate in general and the Sezad in particular, in addition to contributing to achieving renewable energy aspirations and objectives of Oman Vision 2040.

The project will play a major role in augmenting the pace of projects and investments in Sezad and encourage several institutions to switch over to environment friendly energy.

In the first phase of the project, a green hydrogen production plant with a water electrolysis technology with a capacity of 500 megawatts will be established in Duqm zone.

This plant will generate 330,000 tonnes of green ammonia annually. The project, expected to be operational by 2027, will meet the global demand of green hydrogen.

During the following phases of the project, the value chain will be developed and expanded so that the Duqm zone will become a hub for green hydrogen production in the Sultanate of Oman and the region.

Ammonia production plant
Oman Investment Authority (OIA), ACWA Power Saudi Arabia and Air Products also signed an agreement for the joint development of the Oman Hydrogen Project to establish a plant for the production of ammonia using green hydrogen in the Sultanate of Oman.

The parties agreed to establish the joint investment project at Salalah Free Zone and provide it with the latest technologies recognised in this field and integration of innovative renewable energy from solar, wind, storage and hydrogen production by using electrolysis process, nitrogen production through air separation and green ammonia production.

An OQ Group official said the Sultanate of Oman has the potential and natural capabilities of solar and wind energy to be one of the most important countries in the world to attract green hydrogen projects and lead green industries, in addition to the presence of specialised Omani cadres, local companies and modern technologies capable of localising these projects.

He explained that the use of green hydrogen in the industrial, logistical and infrastructure sectors is crucial and key enabler for investments.

He added that there are strategic investments in the Sultanate of Oman in this sector.

 

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