LUPRO: renewable ammonia production in Oman with offtake to Korea & Thailand
By on February 11, 2025
Project launched with firm sales contract in place
Click to learn more. LUPRO, Muscat House and MA Corporation have signed a production, supply and sales agreement for renewable ammonia produced in Oman. Source: LUPRO.
Korean energy company LUPRO has entered into an agreement which will see it produce 5 million tons total of renewable ammonia in Oman from 2027 to 2032. The ammonia produced from the project will be supplied to Thailand and Korea. The project will be implemented through the vehicle LUPRO Oman, a newly formed local joint venture between LUPRO and a “major company” in Oman.
In the new joint venture, LUPRO will have an 80% stake which the press release notes as an atypical arrangement in the Middle East where “in general, the local company takes a stake of 51% or more.” LUPRO Oman will build a “green energy” generation portfolio of 5 GW or more on a site of 8.4 million square meters in the Duqm Free Economic Zone on Oman’s east coast from 2026.
The renewable ammonia will be imported into Korea through multiple channels including Saemangeum in Jeollabuk-do Province, Incheon Port, and Pyeongtaek New Port.
LUPRO Oman also signed a ten-year contract with Thailand oil & gas company MA Corporation to supply renewable ammonia (reportedly 5 million tons total), produced in Oman at a price of $4.5 billion.
This contract has laid the foundation for us to develop this into a large-scale project involving all of the government agencies in Oman, including the Oman Investment Authority, the state-owned energy company, the national power authority, and the water and electricity authority. We will grow [LUPRO Oman] into a global green energy producer.
Al-Rumhi, Chairman of LUPRO Oman, in his organisation’s official press release, 2 January 2025
We will respond to the climate crisis facing the world and expand the supply of hydrogen energy resources, which is essential for achieving carbon neutrality, not only domestically but also to the global market beyond Asia.
Kim Se-ho, Chairman of LUPRO, in his organisation’s official press release, 2 January 2025
In September last year, LUPRO unveiled plans for a renewable hydrogen and ammonia production site in the UAE, including port facilities to export the product back to Korea.