OQEP Plans New 35MW Solar Power Plant for Oman

OQEP plans a 35MW solar plant in Oman to cut emissions, partnering with OQAE, aiming for Net Zero by 2050 and reducing flaring by 2027.
 

OQ Exploration and Production (OQEP) is planning to build a new solar power plant in Oman. This plant will have a capacity of 35 megawatts (MW). OQEP aims to use solar energy to help reduce carbon emissions from its operations. This project is part of OQEP’s broader effort to decarbonise its upstream operations.

Partnership with OQ Alternative Energy

OQEP is working with OQ Alternative Energy (OQAE) on this solar power project. The goal is to cut greenhouse gas emissions from their operations. OQEP is also connecting Block 60 to the national electricity grid. This connection will help Block 60 move away from using gas and diesel for power.

OQEP's Decarbonisation Goals

OQEP recently announced it will sell 25% of its shares through an Initial Public Offering (IPO) on the Muscat Stock Exchange (MSX). The company also shared its goal to reach Net Zero greenhouse gas emissions by 2050. This target includes their operated assets like Block 60, Block 8, the Musandam Gas Plant, and their processing and export terminal.

Upgrading Operations and Technology

Last week, the company announced its divestment plan in a media briefing. Officials shared the company’s goal to cut greenhouse gas emissions (Scope 1 and 2) to Net Zero by 2050. This goal applies to Block 60, Block 8, the Musandam Gas Plant, and the company’s processing facility and export terminal. They also plan to stop routine flaring by 2027.

The company has already reduced its greenhouse gas intensity to below 15kg CO2/boe in its operated assets. This is lower than the Oil & Gas Climate Initiative’s target. Switching from diesel to gas for power and using modern technology helped achieve this reduction. The company also uses a smart tool to detect and fix methane leaks, further cutting emissions.

Broader Renewable Energy Initiatives in Oman

Beyond OQEP's operations, Oman has been making significant strides in renewable and sustainable energy initiatives. Earlier this year, a new clean energy startup announced the launch of an innovative waste-to-hydrogen project in Oman. The startup, Manah Hydrogen, aims to turn solid waste into hydrogen. This hydrogen will then help support sustainable transportation and other green energy uses.

Equally, in the latter stages of 2023, there was the launch of a large solar PV plant to power the Sharqiyah Desalination Plant. This solar plant will have a yearly production capacity of over 32,000 MWh. With this capacity, it will cover 100 per cent of the desalination plant’s consumption during daylight.

So, these developments also underscore Oman's commitment to diversifying its energy portfolio. They also show the sultanate's move to sustainable practices across the energy sector too.

OQEP’s Future Plans for Emission Reductions

OQEP has several plans for reducing greenhouse gases over the next 10 years. These include projects to cut flaring and improve energy efficiency. They are also focusing on optimising processes, and investing in renewable energy too. The company aims to reduce Scope 1 and 2 greenhouse gas emissions by up to 40% from 2021 levels.
Overall, OQEP is making significant efforts to improve sustainability and reduce emissions. The new solar power plant and other projects are key parts of their strategy to support cleaner energy and meet their environmental goals.