Hydrom has signed an agreement with a consortium between DEME and OQ, for the Hyport Duqm project, and awarded a 47-year contract to the consortium comprising French utility company ENGIE and South Korea’s POSCO

MicrosoftTeams-image (1)

Hydrom awards to develop new hydrogen projects in Oman. (Credit: DEME)

Oman’s state-owned entity Hydrom has awarded contracts worth $10bn to two separate consortia, for the development of green hydrogen projects in Al Wusta governorate, Oman.

Hydrom has signed an agreement with offshore contractor and developer DEME and integrated energy company OQ, for the Hyport Duqm project.

Hyport Duqm is planned to be developed in a 150km2 area, a part of the Special Economic Zone at Duqm, to produce green hydrogen and green ammonia.

It is designed to produce wind power and solar energy with a combined renewable power capacity of around 1.3 GW in Phase 1 and more than 2.7GW when Phase 2 is realised.

The first phase of the project is set to produce around 330,000 tonnes of green ammonia and more than 650,000 tonnes during the second phase.

Hyport Duqm project is part of Oman’s Vision 2040, and is an important step towards achieving zero carbon neutrality by the year 2050.

DEME Concessions managing director Martin D’Uva said: “After nearly three years of joint development with our partner OQ, we are thrilled to accelerate our transformative journey towards a green hydrogen-powered future and to support Oman in achieving its ambitious green energy targets, while strengthening DEME’s long-term presence in Oman.

“The project will harness the immense potential of hydrogen as a clean and versatile energy carrier, leveraging Oman’s strategic location and abundant renewable resources to establish a robust green hydrogen ecosystem.”

OQ alternative energy chief executive Najla Zuhair Al-Jamali said: “Together with DEME, we are pleased to sign this agreement to develop the Hyport Duqm project in the Special Economic Zone.”

Simultaneously, Hydrom has awarded a 47-year contract to the consortium comprising French utility company ENGIE and South Korean steel-making company POSCO.

The consortium included Samsung Engineering, Korea East-West Power (EWP), Korea Southern Power (KOSPO), and FutureTech Energy Ventures Company.

The contract, awarded as part of the Hydrom Phase A Round 1, will deliver a green ammonia project with a 1.2 million tonnes per year capacity.

The project includes up to 5GW of new wind and solar capacity, a Battery Energy Storage System (BESS) and a renewable hydrogen plant with up to 200ktpa capacity.

ENGIE said that the green hydrogen produced at the project will be transported by a pipeline to be built to the port of Duqm.

The green hydrogen will feed the ammonia production plant, and the 1.2mtpa green ammonia will be exported in South Korea in 2030.

The consortium is expected to begin construction in 2027, with the first shipment of green ammonia to South Korea planned for the second half of 2030, said ENGIE.

ENGIE executive vice president Sébastien Arbola said: “This venture will benefit from ENGIE’s industrial expertise. By developing renewable energies, renewable hydrogen and flexible assets such as batteries, this project is perfectly in line with the Group’s strategy to accelerate the transition to carbon neutrality.

“It will contribute to several of our 2030 ambitions: reaching 4GW of hydrogen capacity and 10GW of batteries.”