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Strong investor interest in Oman hydrogen blocks

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MUSCAT: Engineer Abdulaziz bin Said al Shidhani, Director General of Renewable Energy and Hydrogen at the Ministry of Energy and Minerals, confirmed that investor interest in two blocks offered by the government for green hydrogen development in Duqm has been significant. As many as 40 companies have so far requested pre-qualification documents to participate in the auction round, he said.

In a statement to Oman News Agency (ONA), he added that around $20 billion in green hydrogen investments are targeted by the year 2030 through the implementation of Phase A of the auction programme. A total of six blocks will be offered during the two rounds of Phase 1 with the second round due to launch in the second quarter of 2023, he said.

He added that according to the plan drawn up by the Ministry of Energy and Minerals along with Hydrom, the first set of project agreements will be signed during Q1 2023. This will be followed by the announcement of new blocks in Dhofar Governorate, agreements for which will be signed by the end of next year.

Output from green hydrogen projects will total around one million tonnes by 2030 in line with the Ministry’s Green Hydrogen Strategy.

Al Shidhani said the Ministry is currently studying the best options for developing current legislation in order to attract more investments in the field of green hydrogen, and to develop a clear-cut strategy for the energy transition journey. The goal in the first stage is to export green hydrogen, while exploring the potential to develop local demand.

In this regard, the Ministry of Energy and Minerals is working with the Ministry of Foreign Affairs, the Public Authority for Special Economic Zones and Free Zones, and government companies represented by Hydrom, OQ Alternative Energy and Asyad Group in exploring new markets for export and utilisation. To this end, Oman is capitalizing on memorandums of understanding and cooperation signed between the Sultanate of Oman and a number of countries targeted as markets.

Work is also underway to develop infrastructure investment packages that Hydrom will coordinate with specialized government companies on a commercial basis.

At the same time, the Oman Sustainability Centre will follow up the implementation of Oman's plans for each sector and its commitments to zero carbon neutrality by 2050, he added. — ONA

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