BUSINESS REPORTER RIYADH
Continuing its efforts to unlock the potential of the green hydrogen sector in Oman, Hydrogen Oman (Hydrom) conducted an in-person session in Riyadh on September 6, 2023. The event aimed to spotlight Hydrom's vital role in the green hydrogen field and promote the Round 2 Public Auction of green hydrogen blocks in the Sultanate of Oman. Distinguished guests, including embassy representatives from many countries interested in green hydrogen, prominent government officials and business leaders from the Saudi private sector, and members of the press, attended the event.
The session commenced with an opening address delivered by HH Sayyid Faisal bin Turki al Said, the Ambassador of the Sultanate of Oman to the Kingdom of Saudi Arabia. His enlightening words were followed by a keynote presentation on Oman's green hydrogen strategy and the investment opportunities offered in Round 2 of the Public Auction delivered by Eng Abdulaziz al Shidhani, Managing Director of Hydrom. Following this, an engaging and insightful Q&A session was held, allowing for a rich exchange of ideas and perspectives among the attendees.
HH Sayyid Faisal commented on the event, saying, "We are pleased to welcome Hydrom to Riyadh for this event. The visit highlighted the strong investment and cooperation opportunities that leverage the enduring relations between the Kingdom of Saudi Arabia and Oman. Both nations share a common vision of sustainable energy production and a net zero economy. Oman's abundant renewable energy resources and world-class infrastructure and logistics make it an ideal destination for Saudi investors and those from other countries looking to steer the world toward a greener, more sustainable future." "Our visit to Riyadh today is part of our ongoing efforts to showcase Oman's Green Hydrogen sector and the Round 2 Public Auction of green hydrogen blocks in the Dhofar Governorate as prime investment prospects. With its vast renewable energy resources and available Tier 1 infrastructure and logistics, Oman offers immense potential for green hydrogen production, making it an ideal choice for Saudi investors looking to be part of the green hydrogen revolution. Hydrom is committed to facilitating such partnerships to drive the growth of Oman's green hydrogen industry, offering substantial benefits to businesses seeking opportunities for sustainable investments in the Sultanate," said Eng Abdulaziz al Shidhani.
Oman's Round 2 Public Auction for green hydrogen blocks is capturing widespread attention from international energy corporations. This auction is poised to award up to three green hydrogen blocks within the Dhofar Governorate, presenting lucrative investment prospects and highlighting Oman's commitment to fostering a robust green hydrogen sector.
The previous Round 1 auctions resulted in agreements for green hydrogen projects with total investment exceeding $30 billion. These projects are anticipated to generate a combined capacity of 750 KTPA (Kilo-Tonnes Per Annum) of green hydrogen per annum, supported by an installed renewable energy capacity surpassing 18.5 GW. This infrastructure covers an extensive area totaling 1,600 km2 in Duqm.
The current round was launched in June of this year to allocate up to three blocks with sizes ranging from 340 km2 to 400 km2. These blocks hold substantial potential for green hydrogen production, leveraging Oman's abundant solar and wind resources and advantageous geographic positioning.
Oman has a long-term plan to produce more than 1 MTPA of green hydrogen by 2030, ramping up to 8.5 MTPA by 2050, with an expected cumulative investment value of $140 billion for the projects. Moreover, the government's strategic objectives for the transition to green hydrogen include decarbonisation and establishing a competitive hydrogen sector to attract foreign investors and support innovation and skills development. Hydrom, as the orchestrator and master planner of Oman's green hydrogen sector, is committed to seeing this plan come to fruition and supporting the Sultanate's vision for a sustainable energy future.
Companies interested in participating in the Round 2 Public Auction can register through the Hydrom website at www.hydrom.om. Hydrom is accepting Statements of Qualification (SOQ) until 08 October 2023. The bid evaluation process is scheduled to commence in January 2024 and aims to finalise and award the winning bids by the end of the first quarter 2024.