ENGIE, a global leader in low-carbon energy and services, together with POSCO, one of the world’s largest steel producers, have announced their spearheading role in a consortium set to mobilize Oman’s renewable energy resources through the development of a 1.2mtp Green Ammonia project.
According to the statement, “Other partners in the consortium include Samsung Engineering, Korea East-West Power Co. (EWP), Korea Southern Power Co. (KOSPO), and FutureTech Energy Ventures Company Ltd. (a subsidiary of PTTEP).”
The ENGIE and POSCO-led consortium has been named the winner of the land block (Z1-02) offered by Hydrom, the orchestrator and master planner of Oman’s green hydrogen industry. Spanning 340 sq km, the concession block is located in Duqm, with downstream elements to be established at the Port of Duqm.
By joining forces with our consortium partners, we aim to unlock Oman’s extraordinary renewable energy potential while capitalizing on its expertise and capabilities. Ultimately, this collaboration propels ENGIE toward its global ambitions of attaining a hydrogen capacity of 4GW by 2030,” commented Mr. Frederic Claux, Managing Director of Flexible Generation & Retail, AMEA, and Country Manager GCC from ENGIE.
The land block will include a total renewable energy capacity of approx. 5GW which comprises wind and solar power, in addition to battery energy storage (BESS) and a hydrogen plant that will produce 200 kilotons per annum (ktpa) of green hydrogen.
The hydrogen will then be transported by a pipeline to the Special Economic Zone at Duqm where it will be converted into approximately 1.2 million tons per annum (mtpa) of green ammonia for export. The Commercial Operation Date (COD) is expected by 2030.
The project contract will last for a period of 47 years, broken down into a seven-year development and construction phase followed by a 40-year operational period, and is set to roll out within a month of the contract signing.
Construction is projected to begin in 2027, with the first shipment of green ammonia to Korea planned for the second half of 2030, thereby marking a significant step in sustainable development. The consortium will carry out the feasibility and technical studies, to finalize the total capital expenditure requirement for the project.
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