The green hydrogen subsidiary of Energy Development Oman (EDO), Hydrom has entered 2 new agreements for green hydrogen projects with the winning bidders of round 1 of a competitive auction process it completed recently, and has also launched round 2 to award new land blocks in Dhofar governorate.
Earlier this month, Hydrom announced BP Oman, Amnah and GEO consortiums as 3 winners of round 1 to build 12 GW renewable energy capacity for 500 KTPA green hydrogen production (see Oman Awards Green Hydrogen Projects).
According to the Oman News Agency (ONA), Hydrom has now signed agreements with 2 more winners of round 1 that were identified as POSCO-Engie consortium and Hyport Duqum.
The POSCO-Engie consortium includes Korean steel producer POSCO Holdings, MESCAT Middle East DMCC, Samsung Engineering, Futuretech Energy Ventures, Korea East-West Power and Korea Southern Power. They have been contracted to produce 200 kilotons/annum (KTPA) of green hydrogen with 5.2 GW combined wind and solar energy in the Governorate of Al Wusta which will be used to produce and export green ammonia.
Hyport Duqum consortium comprises OQ Alternative Energy and Belgium based engineering company DEME Concessions NV. This team will produce over 50 KTPA of green hydrogen by 2029 under phase I. DEME said the consortium will use around 1.3 GW combined wind and solar power capacity for phase I, and potentially over 2.7 GW when phase II is finalized.
Under phase I, Hyport Duqum will produce close to 330,000 tons of green ammonia and more than 650,000 tons during phase II.
Both the new contracts are expected to bring in an investment worth over $10 billion to generate 250 KTPA green hydrogen from more than 6.5 GW installed renewables capacity on site.
Altogether, the 5 winning projects under round 1 represents more than $30 billion investment for 750 KTPA green hydrogen.
There are plans to finalize negotiations with companies with which Hydrom had signed commercial term sheets in March 2023, to sign full agreements before 2023-end. It had previously signed commercial term sheets with POSCO-Engie and Hyport Duqum.
Hydrom has also launched round 2 to award 3 plots of land for more green hydrogen projects (see Hydrom Launches Round 2 In Oman).
Oman aims to produce over 1 MTPA of green hydrogen by 2030, and increase it up to 8 MTPA by 2050, with a cumulative investment of $140 billion.
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