An international consortium comprised of the alternative energy business unit of OQ, Marubeni Corporation, Linde, and Dutco have signed a Joint Development Agreement (JDA) for the development of a green hydrogen and green ammonia project at Salalah Free Zone (SFZ) in Oman.
The project, named ‘SalalaH2’, aims to produce up to 1000 tons of green ammonia per day, utilizing OQ’s existing ammonia plant in Salalah. An electrolysis facility with a capacity of up to 400 MW will be built to manufacture green hydrogen.
According to the reports, “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 undergoing studies that will provide the basis for an investment decision.
The project is set to 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, as per the statement.
“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. 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.”
Mr. Philippe Peccard, Linde’s Vice President Clean Energy said, “At Linde, we believe that hydrogen and its derivatives will play a key role in reshaping the global energy landscape, and as a leader in the production, processing, storage, and distribution of hydrogen, we are proud to be a partner in the SalalaH2 project which we expect to be transformational for the local society.”
“The diversified and unique set of global capabilities of the members of this consortium will greatly contribute to making the SalalaH2 project a showcase project that will allow Oman to position itself as a global player in the production and export of green hydrogen or green ammonia,” remarked Mr. Tariq Baker, Vice Chairman, Dutco.