Oman leads green hydrogen ambitions in the Middle East
OMAN'S LEADING HYDROGEN PROJECTS
According to the data, the largest hydrogen project in Oman is the ACME Duqm Hydrogen Project Phase 2, which has a planned capacity of 497 ktpa (kilotonnes per annum) and is expected to commence operations in 2028. Developed by ACME Cleantech Solutions Pvt Ltd, this project will use solar power as its primary energy source to produce green hydrogen.
The POSCO Consortium Duqm Hydrogen Project is another notable initiative, with a projected capacity of 220 ktpa and a target operational date of 2030. The consortium, involving Engie SA (25%), POSCO Holdings Inc (28%), PTT Public Co Ltd (11%) and Samsung E&A Co Ltd (12%) and others (24%), is focusing on leveraging Oman's strategic location at Al Duqm to establish a major hydrogen production and export hub.
The Amnah Consortium Duqm Hydrogen Plant, with a capacity of 215 ktpa and an expected operational date of 2028, is also among the largest in the region. It is being developed by Blue Power Partners AS (33.33%), Copenhagen Infrastructure Partners KS (33.33%) and other stakeholders (33.33%), reinforcing Oman's appeal to international investors in the renewable energy sector.
Further adding to Oman's hydrogen portfolio is the Fortescue Future Industries Oman Hydrogen Project, which is expected to produce 200 ktpa of green hydrogen by 2030. Developed as a 50-50 joint venture between Actis Corp and Fortescue Future Industries Pty Ltd, the project will integrate solar and wind energy to ensure sustainable production.
The EDF Oman Hydrogen Project, with a capacity of 178 ktpa, is another key initiative expected to come online in 2030. Led by Electric Power Development Co Ltd (33.33%), Électricité de France SA (33.33%) and Yamna Ltd (33.33%), this project will also utilise a mix of solar and wind energy, further cementing Oman's position as a leader in green hydrogen.
OMAN'S COMPETITIVE EDGE IN GREEN HYDROGEN
Oman's strategic location along key global shipping routes, combined with its strong renewable energy potential, has positioned it as a prime candidate for green hydrogen production. The country's Duqm Special Economic Zone (SEZAD) has emerged as a focal point for hydrogen investments, attracting international companies eager to capitalise on Oman's low-cost renewable energy resources.
The government, through Hydrom — the orchestrator of Oman's green hydrogen sector — has been actively fostering partnerships with global energy giants to accelerate project development. The Public Authority for Special Economic Zones and Free Zones (OPAZ) has also streamlined regulatory frameworks to facilitate rapid project approvals, making Oman an attractive destination for investors.
While Oman leads the Middle East in planned green hydrogen capacity, it faces competition from regional heavyweights like Saudi Arabia and the UAE. The Neom Helios Hydrogen Plant in Saudi Arabia (219 ktpa) and the ADNOC Ruwais Hydrogen Project Phase 2 in the UAE (200 ktpa) are also set to play a significant role in the region's hydrogen economy. However, Oman's focus on green hydrogen, as opposed to blue hydrogen projects reliant on natural gas, gives it a distinct competitive edge in the global push for net-zero emissions.
2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Business
02-07-2025
- Arabian Business
Saudi's ACWA Power's $1.9bn rights issue approved by shareholders
Saudi Arabia's ACWA Power has received shareholders' go-ahead for its SAR 7.1 billion (US$1.9 billion) rights issue. With SAR 5.28 billion (US$1.41 billion) to SAR 5.98 billion (US$1.59 billion) earmarked for financing current and future projects and up to SAR 1.41 billion (US$380 million) for mergers and acquisitions, this marks a key step in aggressively funding its expansion in renewable and clean energy projects. The company will offer approximately 33.93 million shares at SAR 210 (US$56) a piece. On Wednesday, ACWA's shares were trading at SAR 240, down 3.23 per cent. According to Bloomberg, ACWA has been one of the worst performers on Saudi Arabia's stock exchange in 2025, with shares down 40.6 per cent so far this year. It's high this year was on January 20, when it touched SAR 435.2. The company sees the rights issue as critical to its plan to boost annual project spending to as much as $2.5 billion as it seeks to triple assets under management by 2030. It's working to expand into countries like China, Malaysia and Turkey, and is also building new capacity at home as part of Saudi Arabia's drive to neutralise carbon emissions by pushing into solar, wind and green hydrogen. In February this year, ACWA Power bought power and water assets in Kuwait and Bahrain from France's Engie SA for US$693 million. It acquired stakes in three plants totalling more than 3 gigawatts of power capacity and 138 million gallons a day of desalination in Bahrain, as well as Engie's share of the 1.5-gigawatt Az Zour North project in Kuwait. For the first quarter of 2025, ACWA Power said its operating income before impairment losses and other expenses increased by 117 per cent to reach SAR 870 million (US$232 million), driven by higher development business and construction management services income. Net profit reached SAR 427 million (US$113.9 million) for the period, 44 per cent higher QoQ.
Al Etihad
02-06-2025
- Al Etihad
US aluminium, steel prices jump, shares drop on Trump's new tariffs
2 June 2025 16:46 LONDON/SEOUL/SINGAPORE (Reuters) US prices of steel and aluminium spiked on Monday while shares of foreign steelmakers slumped after US President Donald Trump said he would double tariffs on imports of the two metals to 50%. Trump announced on Friday the new steel and aluminium levies, which take effect on June 4, intensifying a global trade war. The US is the world's largest steel importer, excluding the European Union, with a total of 26.2 million tons of steel imported in 2024, according to the Department of some industry experts questioned whether the tariffs will be implemented as stated, in light of Trump's earlier reversals, they said uncertainty and climbing prices of the metals would dampen industrial activity."Higher prices are also likely to weigh further on US steel demand from the manufacturing sector, which we already expect to contract this year," said analyst Eoin Dinsmore at Goldman premium for consumers buying aluminium on the physical market in the United States jumped 54% while US hot rolled coil steel climbed by 5%.Germany's second-biggest steelmaker Salzgitter warned that Washington's tariff policy was dealing a severe blow to European United States accounted for around a fifth of European steel exports outside of the EU, according to Germany's steel were sceptical about whether the full force of the tariffs as announced on Friday would come into the tariff shift was applauded by US aluminium producers, who said the move would stop a "flood" of imports."For decades, subsidized foreign producers have hollowed out domestic aluminum manufacturing," said Mark Duffy, president of the American Primary Aluminum of US steelmakers climbed in premarket trade, with Nucor, Cleveland-Cliffs and Steel Dynamics surging between 14% and 26%. ASIAN STEEL SHARES SLIDE Shares of steelmakers eroded in South Korea, which was the fourth-biggest exporter of steel to the United States last year, behind Canada, Mexico and Brazil, according to American Iron and Steel Institute Korea's Industry Ministry said in a statement that it had held an emergency meeting with officials from the country's major steelmakers, including POSCO and Hyundai Steel . Shares of South Korean steelmakers POSCO and Hyundai Steel fell 3% and SeAH Steel Corp tumbled 8%.In Vietnam, steel companies Hoa Sen Group, Nam Kim Steel and Vietnam Steel Corp skidded from 2.7% to 3.4%.The 50% tariffs will add to the challenges facing Korean steel exporters, which have refrained from sharply boosting exports to the US to avoid Washington's scrutiny, despite rising US steel prices, an industry executive told and aluminium tariffs were among the earliest Trump imposed when he returned to office in January. The tariffs of 25% on most steel and aluminium imported to the US went into effect on March 12. TRADE TALKS South Korea, a major US ally, has called for an exemption from tariffs on steel, autos and others items, during talks with the United States. Seoul agreed in late April to craft a trade package by the end of the 90-day pause on Trump's reciprocal tariffs in July, but it has been difficult for negotiators to make big decisions due to a political leadership vacuum ahead of elections on late March, Hyundai Steel announced a plan to build a $5.8 billion factory in Louisiana in response to US tariffs, but the factory will not open until 2029. In April, Hyundai Steel's bigger rival POSCO signed a preliminary deal to make an equity investment in the factory India, which relies heavily on the US for aluminium exports, industry experts also warned of a major hit."This is going to have a detrimental impact," BK Bhatia, director-general at the Federation of Indian Mineral Industries, the country's leading mining body, told Reuters. "The US is the biggest market for Indian aluminium. Government has been negotiating so we are hopeful that with talks, the tariffs will come down."
Zawya
02-06-2025
- Zawya
Oman's HyDuqm hydrogen project eyes FID in 2027
MUSCAT: Hydrogen Duqm LLC (HyDuqm), one of nine large-scale green hydrogen and ammonia projects currently in early development in Oman, anticipates a Final Investment Decision (FID) in 2027, with production slated to commence in 2030. HyDuqm represents a joint venture set up by six leading global companies comprising POSCO Holdings, Samsung Engineering Company Limited, Korea East-West Power Company Limited, Korea Southern Power Company Limited, MESCAT Middle East DMCC (a subsidiary of ENGIE from France), and FutureTech Energy Ventures Limited (FTEV) - the clean energy arm of Thai energy conglomerate PTTEP. In 2023, the JV partners won a concession from Hydrom, the master-planner of Oman's green hydrogen (GH2) economy, to develop a GH2 project in Block Z1-02 in Al Wusta Governorate. The project targets an annual capacity of 1.2 million tonnes of green ammonia, focusing on clean energy production from green hydrogen. According to PTTEP subsidiary FTEV, the partners of HyDuqm are currently 'in the process of assessing wind and solar energy potential (Renewable Resource Assessment) and conducting a feasibility study to evaluate the investment value and profitability of the project prior starting engineering design'. Significantly, FTEV's role as a JV partner in HyDuqm is the latest addition to parent organization PTTEP's expanding presence in Oman's energy industry. 'This investment supports the growth of new businesses aligning with the Company's business plan and provides an opportunity to apply knowledge and experience in green hydrogen production in Thailand, in line with future energy policies,' PTTEP noted in its recently issued 2024 Annual Report. 'PTTEP completed the installation of wind and solar potential measurement stations and has begun collecting data to support the project operations. The ongoing feasibility study phase includes geographical, geotechnical, and hydrological assessments, as well as a Preliminary Environmental and Social Impact Assessment (Pre-ESIA),' it further stated. The feasibility study, according to the Thai state-owned energy giant, will also help determine the amount of required capital expenditure and economic return before proceeding to the engineering design phase in 2025. The Annual Report also shed light on the performance of PTTEP's portfolio of investments in the upstream and midstream segments of Oman's oil and gas sector. One of its largest investments is in Block 61 in central Oman, which accounts for around a third of Oman's gas production. PTTEP owns a 20 per cent interest in the BP-operated concession. In 2024, natural gas and condensate production averaged 1,511 MMSCFD (approximately 267,746 barrels of oil equivalent per day - BOED) and 56,087 bpd respectively. Production from Block 6 – the largest producing oil asset in central Oman – averaged 66,490 bpd of crude oil in 2024. PTTEP Group holds a 2 per cent participating interest in this project, with Petroleum Development Oman (PDO) as the operator. In south Oman, PTTEP Group holds a 1 per cent participating interest in Block 53 (also known as the Mukhaizna field) with Occidental as the operator. In 2024, the average crude oil production was 75,227 bpd. Recently, Oman's Ministry of Energy and Minerals signed an agreement to extend the Block 53 Exploration and Production Sharing Agreement (EPSA) with Occidental and its partners until 2050. Rounding off its upstream assets is Block 12, a large onshore natural gas exploration block in central Oman. PTTEP Group holds a 20 per cent participating interest in the project, with TotalEnergies as the operator. In 2024, two exploration wells were completed, while geological and geophysical studies are currently underway. PTTEP subsidiary PTTEP Oman E&P Corporation (POC), formerly Partex Oman Corporation, also has a 2 percent stake in Oman LNG LLC and an indirect 0.7 per cent stake in Qalhat LNG. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
