Hydrom picks two new mega ammonia projects for Oman

Actis-Fortescue consortium awarded development rights

Via Hydrogen Oman SPC (Hydrom), its dedicated low-carbon hydrogen development vehicle, the Omani government has granted development rights for a large-scale renewable hydrogen project to Actis and Fortescue.

The project will include the construction of about 4.5 GW of wind and solar energy which will power the production of up to 200,000 tons per year of renewable hydrogen (or more than 1 million tons per year of ammonia). The hydrogen will be used both locally and exported as ammonia via the existing port of Salalah. The project is currently in the feasibility stage.

Actis and Fortescue both indicate that Oman is a competitive investment location owing to its strategic location enabling seamless access to major markets in Europe and Asia, strong wind and solar resources, and favourable regulation.

The pair has extensive experience in renewable assets development. Actis has an existing ~21 GW renewable power development portfolio (16GW operational, 5GW under construction or contracted). Fortescue’s project pipeline includes three renewable hydrogen projects which have reached FID. The Australian company recently demonstrated the Fortescue Green Pioneer dual-fuel vessel which successfully sailed on harbour waters in Singapore.

Oman is strategically located between two key green hydrogen demand centers in Europe and Asia. This, in addition to, our tier-1 infrastructure and logistics capabilities have enabled us to leverage our first mover advantage in the global hydrogen industry. The availability of renewable natural resources in Oman coupled with the country’s favorable geopolitical positioning, investor-friendly policies and progressive energy transition strategies make it one of the most suitable countries for green hydrogen production. I would like to congratulate Actis and Fortescue on their awarding and look forward to working together to realise our collective vision.

HE Eng Salim bin Nasser Al Aufi, Minister of Energy and Minerals and Chairman of Hydrom, in Fortescue’s official press release, 29 April 2024

Oman not only has great natural resources, but it is also in an ideal location for export and has set up the structures and regulations needed to help enable this industry to flourish. This strategic partnership between Hydrom, Actis and Fortescue will not only help to drive the development of a large-scale green hydrogen project in Oman, but will lead the way for others around the world to follow, cementing Oman as a powerhouse in green molecules.

Moataz Kandil, MENA President at Fortescue, in his organisation’s official press release, 29 April 2024

EDF Group & partners: renewable ammonia production in Oman

Hydrom has also awarded development land to a consortium featuring EDF Renewables, J-POWER and YamnaCo Ltd, for the development of a 1 million ton-per-year renewable ammonia project. Located near Salalah, the land spans 341 km2.

The consortium plans to install an estimated 4.5 GW of wind and solar capacity coupled with battery storage, which will power about 2.5 GW electrolyser capacity for hydrogen production. The hydrogen will feed into an ammonia plant located in the Salalah Free Zone.

The award, which grants the consortium exclusive development rights for 47 years, completes the “Hydrom Phase A Round 2”, a renewable hydrogen tender procedure launched in June last year.

As part of its National Hydrogen Strategy 2040, Oman plans to achieve a 1 million tons-per-year renewable hydrogen production capacity.

EDF Group and its subsidiary EDF Renewables are proud to be awarded, alongside their partners in the Hydrom project. This achievement demonstrates the trust of the Sultanate of Oman in our decarbonisation solutions. With its Hydrogen Plan, EDF is supporting the energy transition of the sectors which emit the most CO₂. Hydrogen fuels a future where sustainability meets innovation. This is why we’re not just generating power ; we’re paving the way for cleaner, greener, and more innovative energy solutions for the generations to come.

Beatrice Buffon, EDF Renewables Chair and CEO and EDF Group VP (International Division), in Yamna’s official press release, 29 April 2024