Oman Kicks Off First Hydrogen Project In South With An Upgraded $8bn Plan

15 Dec 2023 Issue: 66 / 50 By: James Marriott

Oman state firm Hydrom is extending its green hydrogen ambitions to the south of the country with the allocation of a block for the 4GW, 175,000 t/y SalalaH2 project. Oman faces financing and offtake challenges to hit its 1mn t/y 2030 goal. More awards are due in April, with new infrastructure another priority.

Oman has been racing to establish a low-carbon hydrogen sector. In an effort to entice international investors Muscat has been hosting public bid rounds and this week held its third annual Green Hydrogen Summit. Attracting delegates from the likes of BP and Shell alongside key state firm OQ, the summit sought to convince the world that the sultanate is serious about turning ambition into action.

Announcements on a newly formed company to develop hydrogen infrastructure and an agreement to work with German power giant Siemens Energy on electrolyzer manufacturing in the sultanate (see p19) are big steps in the right direction. But looming over all the projects are tight deadlines and the twin challenges of securing offtake agreements and project finance. (CONTINUED - 1275 WORDS)