The project involves the construction of up to 4.5GW of renewable energy resources that will power electrolysers to produce up to 200,000 tonnes of green hydrogen per annum, which will be sold to local industrial off-takers and will be processed into derivatives
Actis, Fortescue awarded contract for hydrogen project in Oman. (Credit: Patrick Hendry on Unsplash)
UK-based investment firm Actis and Australian green energy company Fortescue have secured the rights to develop, build, own and operate a large-scale green hydrogen project in Oman.
Hydrogen Oman (Hydrom), at a signing ceremony in Muscat, announced that the Actis- Fortescue consortium has won the bid in the second round of a green hydrogen tender process.
Hydrom is an independent entity established by the Omani government to organise and deliver the country’s green hydrogen strategy.
The contract provides Actis and Fortescue with exclusive rights to a high-quality site, allocated to the development of the proposed green hydrogen project, currently in the feasibility stage.
The project includes the construction of up to 4.5GW of renewable energy resources that will power electrolysers to produce up to 200,000 tonnes of green hydrogen per annum.
According to the current plan, the green hydrogen produced will be sold to local industrial off-takers and will be processed into derivatives for export through the existing port of Salalah.
Oman Minister of Energy and Minerals and Hydrom chairman Salim bin Nasser Al Aufi said: “Oman is strategically located between two key green hydrogen demand centres 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 favourable geopolitical positioning, investor-friendly policies and progressive energy transition strategies make it one of the most suitable countries for green hydrogen production.”
Actis has experience in developing renewable power projects, with 21GW of renewable energy capacity managed, including 16GW operational, and 5GW under construction.
Fortescue operates in the green hydrogen industry with a pipeline of projects, including three of which have reached Final Investment Decisions.
The project represents an opportunity to develop a major green hydrogen project, supported by strong offtake demand, a supportive regulatory environment and a strategic location.
Oman has first-rate solar and wind resources and is an ideal location to export green hydrogen derivatives to major demand centres in Europe and Asia.
Furthermore, the consortium has received significant support from major institutions that are willing to participate in the financing of the project.
Fortescue MENA president Moataz Kandil said: “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.”
Actis energy infrastructure director James Mittell said: “Winning this bid with Fortescue is a testament to Actis’ leading position in the global renewables space, at the forefront of the energy transition. We look forward to continuing our collaboration with Fortescue, the Omani government and local community on this project.”