oil and gas

OQ, Marubeni plan green hydrogen and ammonia project in Salalah

October 14, 2021

Muscat – An international consortium comprising Oman’s OQ, Marubeni Corporation – a Japanese trading and investment firm, Linde – a leading global industrial gases and engineering company, and UAE’s Dubai Transport Co (Dutco) have signed a joint development agreement for the development of a green hydrogen and green ammonia project at Salalah Free Zone.

The Salalah region enjoys rich solar and wind resources supported by a world-class shipping infrastructure at the Port of Salalah; all of which position the region to be a global hub for the production and export of green hydrogen and green ammonia, OQ said in a statement.

The proposed project, named ‘SalalaH2’, targets the production of up to 1,000 tonnes per day of green ammonia, utilising OQ’s existing ammonia plant in Salalah. An electrolysis facility with a capacity of up to 400MW will be constructed to produce green hydrogen.

Approximately 1GW of solar and wind energy, produced either by existing or new facilities, will be used to power the electrolyser, the statement said.

The consortium is currently conducting studies that will provide the basis for an investment decision. Various offtake streams will be explored and coordinated with the OQ ammonia plant’s current offtaker including the co-firing needs of coal fired power plants in Asia, the renewable feedstock needs of fertiliser plants in Europe and the decarbonisation needs of the global shipping industry.

Dr Salim al Huthaili, CEO of alternative energy at OQ said, “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 decarbonisation. 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 maximising value and diversifying Oman’s economy in line with Vision 2040.”

Yuji Sato, Marubeni Corporation’s general manager of the Middle East and Africa, said, “Marubeni is keen on leading the development of this project to support the hydrogen economy in Oman, utilising our abundant experience in acting as a lead developer of renewable projects in the Middle East and the world. We are committed to the energy transition and an active participant in the decarbonisation of the world economy. We are delighted to be part of this project in Oman, one of our most important markets in the region.”

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 SalalaH2 project, as per OQ’s statement, is set to create a positive impact on Oman’s national economy through the diversification of its energy infrastructure, transformation of its skills base and transfer of new technologies into the region.

Tariq Baker, vice chairman of Dutco Group, said, “Dutco has strategically positioned itself to be part of the hydrogen economy through driving new investments in the value chain of production of green hydrogen and green ammonia. The diversified set of global capabilities of the members of this consortium will greatly contribute to making the SalalaH2 a showcase project that will allow Oman to position itself as a global player in the production and export of green hydrogen and green ammonia.”

muscatdaily

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