Consortium Studies Oman Green Hydrogen/Ammonia Facility

21.10.2021 - An international consortium comprising the alternative energy business of Oman’s OQ, Japanese conglomerate Marubeni, industrial gases group Linde and engineering firm Dutco has signed a joint agreement to develop a green hydrogen and green ammonia project in the Salalah Free Zone.

The project, called SalalaH2, will include a plant to produce up to 330,000 t/y of green ammonia, utilizing OQ’s existing ammonia facility in Salalah. An electrolysis facility with a capacity of up to 400 MW will also be built 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. OQ said Salalah enjoys rich solar and wind resources supported by a world-class shipping infrastructure at the city’s port, all of which positions the region to be a global hub for producing and exporting green hydrogen and green ammonia.

The consortium is currently conducting studies that will provide the basis for an investment decision. It will also explore various offtake streams, coordinating with the current offtaker of OQ’s ammonia output, including looking at the co-firing needs of coal-fired plants in Asia, the renewable feedstock requirements of European fertilizer plants, as well as the decarbonization needs of the global shipping industry.

“OQ is excited to enter into this unique opportunity as the integration of the Salalah cluster between LPG, methanol and ammonia is already bringing great synergies. Integrating green molecules, and green hydrogen into the system is a true transition story to pave the path towards decarbonization,” said Salim Al Huthaili, CEO of OQ’S alternative energy business. “The potential of low carbon hydrogen production is promising in Oman and this partnership reflects OQ's, and our shareholder OIA’s deep commitment towards maximizing value and diversifying Oman’s economy in line with Vision 2040.”

Author: Elaine Burridge, Freelance Journalist