Hydrogen investment: firms to explore Dhofar green hydrogen scheme

A group comprising Acwa Power, Air Products and OQ is considering producing up to one million tonnes of green ammonia annually.

Saudi utilities developer and investor Acwa Power, along with Oman’s state energy firm OQ and US-based Air Products, has agreed to conduct a feasibility study for the development of a green hydrogen and green ammonia project in Oman’s Dhofar governorate.

The firms signed the memorandum of understanding on 7 December, which coincided with the state visit of Saudi Crown Prince Mohammed bin Salman to Oman. The planned green hydrogen project in Dhofar is expected to produce up to one million tonnes of green ammonia annually, OQ said in a tweet.

It is the fifth green hydrogen-related agreement OQ signed within a year. In December, Belgium-based Deme Concessions and OQ Alternative Energy announced a plan to develop Hyport Duqm, a green hydrogen plant in Oman’s Special Economic Zone at Duqm.

OQ, along with Hong Kong-based InterContinental Energy and Kuwait Government-backed EnerTech, announced a 25GW green fuels scheme in May. To be executed in multiple stages, the project is expected to be located in Haima.

OQ is also part of another team, comprising Japan’s Marubeni Corporation, Ireland-headquartered Linde and the UAE’s Dubai Transport Company, which signed a joint development agreement in October for SalalaH2, a green hydrogen and green ammonia project at Oman’s Salalah Free Zone.

In late November, OQ signed a memorandum of understanding with Korean Gas Technology Corporation (Kogas-Tech) to explore green hydrogen opportunities.

Acwa Power, along with Air Products and Neom, is developing the $5bn-$6bn Helios green fuels project in Saudi Arabia. The project aims to produce 1.2 million tonnes of green ammonia annually.