Mega-scale project to strengthen Oman’s positioning as green energy hub
Landmark venture: Air Products, OQ and ACWA Power sign pact for development of green energy products-based facility in Salalah Free Zone
Published: 04:05 PM,May 27,2022 | EDITED : 08:05 PM,May 27,2022
MUSCAT: A consortium comprising leading industrial gases company Air Products, integrated Omani energy group OQ and Saudi-based energy developer ACWA Power has signed a joint development agreement (JDA) towards a multibillion-dollar investment in a world-scale green hydrogen-based ammonia production facility powered by renewable energy in the Sultanate of Oman. The JDA, signed on May 26, 2022, follows a memorandum of understanding signed in December 2021.
Signing the pact were Air Products Chairman, President and CEO Seifi Ghasemi, OQ Chairman Mulham al Jarf and ACWA Power Chairman Mohammad A Abunayyan.
Envisioned for development in Salalah Free Zone, the joint venture project would be based on proven, world-class technology and include: the innovative integration of renewable power from solar, wind and storage; production of hydrogen by electrolysis; production of nitrogen by air separation; and production of green ammonia.
It is anticipated that the green hydrogen-based ammonia production facility would be equally owned by the project partners.
Air Products Chairman, President and Chief Executive Officer Seifi Ghasemi, said, 'We are delighted and honoured to work with the government of Oman to develop this multibillion-dollar project, which would be similar to the world-scale green hydrogen project we are implementing with our partners in NEOM in the Kingdom of Saudi Arabia. We look forward to applying our know-how, technology and more than 60 years of experience in hydrogen to help move this project forward and take another significant step in decarbonising the world.'
Commenting on this venture, OQ Chairman Mulham al Jarf said, 'We are proud of our partnership with ACWA Power and Air Products. This project positions OQ as an energy transition enabler, while playing on our strengths and leveraging our expertise in the downstream chemicals business, particularly in Salalah where we have extensive operations, and our demonstrated ability to off-take products and competitively deliver them to global customers. The project fits well with the Sultanate of Oman's renewable energy strategy and fosters investments in alternative energy resources, both of which contribute to Oman Vision 2040.'
ACWA Power Chairman Mohammad A Abunayyan said, 'As a company that is driving the transition towards a greener future through utilising cutting-edge technologies and innovative solutions, we are extremely proud to support the Government of Oman's ambition to pursue decarbonisation and advance the development of green hydrogen, considered to be the fuel of the future. Our investment in developing and building water desalination and power production plants in Oman started in 2011, and we continue to expand our robust portfolio in the Sultanate of Oman. Utilising our global expertise, we were successfully able to launch Oman's first utility-scale renewable energy project. Oman continues to be a key market for ACWA Power for its potential, resources and location, making it a tremendous enabler for the production of green hydrogen. The signing of the joint development agreement is another milestone and signifies the continued trust being placed in ACWA Power by all our partners in bringing this ambitious project to life.'
'We aim to leverage our proven track record, knowledge and expertise in developing sustainable global scale green projects including NEOM – a pioneering at-scale green hydrogen and ammonia facility, and we are confident of leading green hydrogen development globally through partnership and collaboration,' Abunayyan added.
Air Products is a world-leading industrial gases company in operation for over 80 years. Focused on serving energy, environment and emerging markets, the Company provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, and food and beverage. Air Products is also the global leader in the supply of liquefied natural gas process technology and equipment.
The Company develops, engineers, builds, owns and operates some of the world's largest industrial gas projects, including: gasification projects that sustainably convert abundant natural resources into syngas for the production of high-value power, fuels and chemicals; carbon capture projects; and world-scale low- and zero-carbon hydrogen projects supporting global transportation and the energy transition. Fiscal sales of $10.3 billion were achieved in 2021 from operations in over 50 countries.
ACWA Power is a developer, investor and operator of power generation, desalinated water and green hydrogen production plants. The company’s Power's portfolio comprises 65 assets in operation, advanced development, or construction with an investment value of $67.6 billion, with capacity to generate 43.4 GW of power and produce 6.4 million m3/day of desalinated water per day.
Signing the pact were Air Products Chairman, President and CEO Seifi Ghasemi, OQ Chairman Mulham al Jarf and ACWA Power Chairman Mohammad A Abunayyan.
Envisioned for development in Salalah Free Zone, the joint venture project would be based on proven, world-class technology and include: the innovative integration of renewable power from solar, wind and storage; production of hydrogen by electrolysis; production of nitrogen by air separation; and production of green ammonia.
It is anticipated that the green hydrogen-based ammonia production facility would be equally owned by the project partners.
Air Products Chairman, President and Chief Executive Officer Seifi Ghasemi, said, 'We are delighted and honoured to work with the government of Oman to develop this multibillion-dollar project, which would be similar to the world-scale green hydrogen project we are implementing with our partners in NEOM in the Kingdom of Saudi Arabia. We look forward to applying our know-how, technology and more than 60 years of experience in hydrogen to help move this project forward and take another significant step in decarbonising the world.'
Commenting on this venture, OQ Chairman Mulham al Jarf said, 'We are proud of our partnership with ACWA Power and Air Products. This project positions OQ as an energy transition enabler, while playing on our strengths and leveraging our expertise in the downstream chemicals business, particularly in Salalah where we have extensive operations, and our demonstrated ability to off-take products and competitively deliver them to global customers. The project fits well with the Sultanate of Oman's renewable energy strategy and fosters investments in alternative energy resources, both of which contribute to Oman Vision 2040.'
ACWA Power Chairman Mohammad A Abunayyan said, 'As a company that is driving the transition towards a greener future through utilising cutting-edge technologies and innovative solutions, we are extremely proud to support the Government of Oman's ambition to pursue decarbonisation and advance the development of green hydrogen, considered to be the fuel of the future. Our investment in developing and building water desalination and power production plants in Oman started in 2011, and we continue to expand our robust portfolio in the Sultanate of Oman. Utilising our global expertise, we were successfully able to launch Oman's first utility-scale renewable energy project. Oman continues to be a key market for ACWA Power for its potential, resources and location, making it a tremendous enabler for the production of green hydrogen. The signing of the joint development agreement is another milestone and signifies the continued trust being placed in ACWA Power by all our partners in bringing this ambitious project to life.'
'We aim to leverage our proven track record, knowledge and expertise in developing sustainable global scale green projects including NEOM – a pioneering at-scale green hydrogen and ammonia facility, and we are confident of leading green hydrogen development globally through partnership and collaboration,' Abunayyan added.
Air Products is a world-leading industrial gases company in operation for over 80 years. Focused on serving energy, environment and emerging markets, the Company provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, and food and beverage. Air Products is also the global leader in the supply of liquefied natural gas process technology and equipment.
The Company develops, engineers, builds, owns and operates some of the world's largest industrial gas projects, including: gasification projects that sustainably convert abundant natural resources into syngas for the production of high-value power, fuels and chemicals; carbon capture projects; and world-scale low- and zero-carbon hydrogen projects supporting global transportation and the energy transition. Fiscal sales of $10.3 billion were achieved in 2021 from operations in over 50 countries.
ACWA Power is a developer, investor and operator of power generation, desalinated water and green hydrogen production plants. The company’s Power's portfolio comprises 65 assets in operation, advanced development, or construction with an investment value of $67.6 billion, with capacity to generate 43.4 GW of power and produce 6.4 million m3/day of desalinated water per day.