A global consortium has been formed to develop a green hydrogen and green ammonia project in Oman. State-owned energy company OQ of Oman, Japanese trading company Marubeni Corporation, Germany's industrial gases and engineering company Linde, and Dubai Transport Co (Dutco) have signed a joint development agreement to conduct technical and commercial feasibility studies on developing the facility in the Salalah Free Zone.

The proposed SalalaH2 project targets the production of up to 1,000 tonnes per day of green ammonia, utilizing OQ’s existing ammonia plant in the area. An electrolysis facility with a capacity of up to 400 megawatts will be constructed to produce green hydrogen. Approximately 1 gigawatt of solar and wind energy, produced either by existing or new facilities, will be used to power the electrolyzer.

The Salalah region has substantial solar and wind resources, which together with the shipping infrastructure at the Port of Salalah, positions the region to be a global hub for the production and export of green hydrogen and green ammonia, OQ says.

The studies being conducted 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 fertilizer plants in Europe, and the decarbonization needs of the global shipping industry.

“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," says Salim al Huthaili, chief executive officer of alternative energy at OQ. "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.”

Linde is a leader in the production, processing, storage and distribution of hydrogen. Philippe Peccard, Linde’s vice president for clean energy, says hydrogen and its derivatives will play a key role in reshaping the global energy landscape.

“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," adds Tariq Baker, vice chairman of Dutco Group. "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.”