Saudi Arabia's ACWA Power, Oman's state-owned energy company OQ and US-based Air Products have signed an agreement to explore developing a hydrogen project in the sultanate's southern governorate of Dhofar.
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The memorandum of understanding "aims at conducting a feasibility study on developing H2Oman project in Dhofar to produce 1 million tons of green ammonia annually," OQ said on Twitter Dec. 7.
ACWA Power is involved in Saudi Arabia's $6.5 billion green hydrogen and ammonia project that is being developed with futuristic, zero-carbon city Neom and Air Products. Saudi Arabia's sovereign wealth fund has a 44% stake in ACWA Power.
Neom is part of Saudi crown prince Mohammed bin Salman's flagship Vision 2030 project, intended to diversify the economy away from oil. The Neom project, which will produce 240,000 mt/year of green hydrogen to create 1.2 million mt/year of ammonia, is expected to start in the first quarter of 2026.
Oman, the Middle East's biggest oil producer outside OPEC, is in talks with investors to build green ammonia and hydrogen projects in three free zones, a government official said Aug. 23.
The country's Public Authority for Special Economic Zones and Free Zones is currently negotiating with several international companies that have expressed an interest in establishing projects to produce green hydrogen and ammonia in Duqm, Salalah and Sohar, Jalal al-Lawati, an official from the authority, said in a statement.
The authority has reserved around 200 sq km of land for renewable energy projects at Duqm, Lawati said.
Oman is accelerating efforts to develop clean energy products as it seeks to supplement its energy industry and cater to the global demand for green ammonia and hydrogen.
The authority has already signed a land reservation agreement with India's renewables company ACME Solar Holding Private Limited to develop a green hydrogen and ammonia project in Duqm free zone in the south.
Meanwhile, German energy company Uniper will join Oman's Hyport Duqm renewable hydrogen project to provide engineering services and negotiate an exclusive offtake agreement for green ammonia from the facility, Uniper said July 19.
InterContinental Energy also launched a 25-GW project in Oman focused on green ammonia exports, adding to its 26 GW project in development in Australia, the company said May 18. It is partnering in a consortium with OQ and Kuwaiti government-backed energy investor and developer EnerTech on the project.
Oman's Ministry of Energy and Minerals, BP Oman, Shell Oman, and Total Energy Oman are among 13 members of the National Hydrogen Alliance that has been formed to promote production of the commodity in the country. The alliance will collaborate in the refining and transportation of hydrogen, as well as its domestic use and export.