Omani state-owned companies Asyad Group and OQ Alternative Energy have partnered with Sumitomo Corporation Middle East to explore positioning the Sultanate as a global hub for low-carbon fuels in the bunkering industry.

In a joint statement, Asyad announced that the three entities have signed an agreement to initiate a feasibility study aimed at assessing the viability of establishing Oman as a leader in sustainable fuel solutions. As part of the study, a Request for Information (RFI) has been issued to the world’s leading shipping companies. The insights gained from this RFI will be pivotal in shaping the study’s conclusions.

The study will examine several critical factors, including the levelised costs of delivering low-carbon fuels, necessary infrastructure investments, and the alignment with global regulatory standards. The aim is to leverage Oman's vast renewable resources to offer competitive low-carbon fuels, such as e-methanol and ammonia, in line with Oman’s Vision 2040 and its sustainable energy strategy.

Key bunkering facilities at the Ports of Salalah and Duqm have been identified as potential sites for retrofitting to accommodate low-carbon fuel operations, positioning Oman as a strategic player in the future of global maritime fuel supply.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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