BUSINESS REPORTER
SALALAH, SEPTEMBER 5
OQ Alternative Energy (OQAE) and Asyad Group have signed an offtake term sheet to advance the deployment of green hydrogen for mobility applications in Oman, marking an important step in connecting the country’s emerging green hydrogen capabilities with low-carbon transport solutions. Under the term sheet, Asyad will explore the use of green hydrogen produced through OQAE’s green hydrogen deployment project in Al Duqm, supporting the development of hydrogen-powered mobility applications and contributing to the foundations of a hydrogen mobility ecosystem in Oman.
The collaboration brings together two strategic national players with a shared objective: translating Oman’s growing renewable energy and green hydrogen capabilities into tangible applications that can support the decarbonisation of transport and other hard-to-abate sectors while creating a pathway towards wider commercial adoption.
“The next phase of Oman’s hydrogen journey is about moving from potential to practical application. This partnership with Asyad is an important step in that direction, connecting green hydrogen production with a real mobility use case and creating an opportunity to build experience across the full value chain”, said Salim al Kamyani, CEO of OQ Alternative Energy. “At OQ Alternative Energy, we see demonstration projects such as this as essential to building the capabilities, infrastructure and market confidence required for the hydrogen economy to scale. By working with strategic partners such as Asyad, we can experience technologies and business models in real operating environments, generate local knowledge and identify the conditions needed for broader adoption”.
He explained, “Oman has significant potential to become a competitive producer and exporter of renewable energy and green hydrogen. At the same time, developing a strong domestic market is critical to building a resilient hydrogen ecosystem. Our ambition is to help create an environment where Oman’s hydrogen potential can translate into competitive projects, new industries and sustainable value for the nation”.
Ahmed al Bulushi, CEO of Asyad Drydock & Infrastructure Services, said, “Decarbonising transport requires practical solutions that can be deployed at scale and supported by a reliable energy ecosystem. Our collaboration with OQAE provides an opportunity to explore green hydrogen as part of that transition and to translate Oman’s emerging hydrogen capabilities into applications across the logistics and mobility value chain. Asyad is committed to supporting the development of more sustainable logistics solutions and to strengthening Oman’s position as a globally connected logistics hub. By participating in the development of hydrogen mobility solutions, we are helping build the operational experience, partnerships and infrastructure needed to support the next generation of low-carbon transport in the Sultanate of Oman”.
This represents OQAE’s first end-to-end green hydrogen deployment project, designed to build practical capabilities across the value chain and lay the foundation for future implementation at scale. It includes renewable power integration, hydrogen production, operations, certification, handling and commercialisation; and is expected to produce up to 400 kilogrammes of green hydrogen per day, with the potential to expand through a dedicated hydrogen refuelling station in Al Duqm.
Located within the Special Economic Zone at Duqm, the project provides a platform to explore the integration of renewable energy, hydrogen production and end-use applications within a single industrial and logistics ecosystem. It supports Oman’s broader ambition to establish a competitive and sustainable hydrogen sector in line with Oman Vision 2040 and Oman’s net-zero targets.
The project is designed to deliver value beyond hydrogen production. By connecting production with end use, it will generate practical insights into operations, certification, infrastructure, safety, demand and support the development of Oman’s broader hydrogen economy.
The signing marks the next phase of collaboration between OQAE and Asyad as the two organisations work to translate the term sheet into a deployment framework. By connecting green hydrogen production with mobility applications, the partnership will build the technical, operational and commercial experience needed to support future projects and strengthen the foundations of Oman’s emerging hydrogen economy.
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