BP and Oman to develop multiple-GW green hydrogen project by 2030
Oman’s Ministry of Energy and Minerals signed a strategic framework agreement with BP to deliver a multiple-GW renewable energy and green hydrogen project by 2030
Oman’s Ministry of Energy and Minerals signed a strategic framework agreement with BP to deliver a multiple-GW renewable energy and green hydrogen project by 2030.
The agreement will include the development of an integrated plant with solar energy, wind energy and green hydrogen production. The framework agreement was signed by Oman’s Minister of Energy and Minerals, Mohammed al-Rumhy, and Stephen Willis, BP’s senior vice president in the Middle East.
“Today’s agreement represents what BP is able to offer as an integrated energy company,” said Bernard Looney, BP’s CEO, following the signing of the pat.
“These projects will build on our gas business, and bring wind, solar and green hydrogen together in a distinctive and integrated way supporting Oman’s low carbon energy goals.”
The agreement is the first major deal to be signed between Oman and a British firm since the Sovereign Investment Partnership Deal was inked last week. The bilateral investment deal seeks to increase high-value investment in both countries.
The investment agreement was signed in London between the UK’s Office for Investment and the Oman Investment Authority.
“Following the signing last week of the UK-Oman Sovereign Investment Partnership, this investment by BP into Oman’s renewable energy sector is a shining example of our countries’ joint ambition to facilitate strategic and commercial bilateral investment,” the UK’s Minister for Investment Gerry Grimstone said on 17 January.
“The project demonstrates our shared vision for future prosperity through clean growth, further strengthening the partnership between the UK and the Sultanate of Oman.”
A number of major green hydrogen projects are planned in Oman as the sultanate seeks to become a global clean hydrogen hub.
Energy & Utilities reported in June 2021 that the debt raising process had started for a $2.5bn green hydrogen and ammonia project being planned in Oman by ACME Solar Holdings.
The ammonia and hydrogen facility is due to be developed in the Duqm industrial zone, with the aim of supplying green ammonia to Europe, America and Asia.
ACME is currently developing a pilot green hydrogen and ammonia plant in Rajasthan, India, which is due to start operation in 2021. ACME is the largest solar energy operator in India, with more than 3GW of solar capacity under operation and 3GW under construction.
In October 2021, Japan’s Marubeni, Germany’s Linde and the UAE’s Dutco Group have signed a joint development agreement (JDA) with Oman’s state energy company OQ to conduct technical and commercial feasibility studies on developing a green hydrogen and green ammonia production facility in the Salalah Free Zone, Oman.
The proposed ‘SalalaH2’ project would produce up to 1,000 tonnes a day of green ammonia, utilising OQ’s existing ammonia plant in Salalah. The group will develop an electrolysis facility with a capacity of up to 400MW to produce green hydrogen for ammonia production.
The electrolyser will be powered by approximately 1GW of solar and wind power.
The alternative energy arm of OQ, in partnership with Belgium’s DEME, is already working on plans for a green hydrogen and ammonia project at the Duqm Special Economic Zone (SEC) in Oman.
In the first stage of development, the Hyport project will develop an electrolyser capacity of between 250MW to 500MW, which will be powered by up to 1.3GW of solar and wind renewable energy.
The consortium began undertaking a solar and wind monitoring study for the project in 2019, and has identified an area in the central Al-Wusta governorate that has significant solar radiation during the day and strong wind at night to enable the development of both solar and wind capacity for the green hydrogen scheme.
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