An international consortium has signed a Joint Development Agreement for the development of a green hydrogen and green ammonia project at the Salalah Free Zone in Oman, according to official sources.
The sources said the consortium consists of the alternative energy business unit of Oman’s national petroleum investment company OQ, Marubeni Corporation, Linde, and Dutco.
According to the sources, Salalah enjoys rich solar and wind resources supported by shipping infrastructure at the Port of Salalah.
All of these, the sources said, position the region to be a global hub for the production and export of green hydrogen and green ammonia.
The new project, named SalalaH2, will target the production of up to 1,000 tons per day of green ammonia, utilizing OQ’s existing ammonia plant in Salalah.
An electrolysis facility with a capacity of up to 400 MW is expected to be constructed to produce green hydrogen.
Approximately 1 GW of solar and wind energy, produced either by existing or new facilities, will be used to power the electrolyzer.
The consortium is currently said to be conducting studies to provide the basis for an investment decision.
Various offtake streams are expected to be explored and coordinated with the OQ ammonia plant’s current off-taker including the co-firing needs of coal fired power plants in Asia, the renewable feedstock needs of fertilizer plants in Europe, and the decarbonization needs of the global shipping industry.
The project will apparently create a positive impact on Oman’s national economy through the diversification of its energy infrastructure, the transformation of its skills base, and the transfer of new technologies into the region.