A green hydrogen project in Oman, being developed by a consortium of Actis, a British investment firm, and Fortescue, an Australian mining giant, has taken a significant leap forward. The project has entered the pre-front-end engineering and design (pre-FEED) stage, according to a source close to the initiative.
This development comes just a month after the consortium was awarded the rights to develop, build, own, and operate the green hydrogen facility in Oman. The project was then in the feasibility stage. The consortium secured the project site through Oman's second round of land auctions for green hydrogen and ammonia projects.
Located in Oman's Dhofar governorate, the planned green hydrogen project holds immense potential. It envisions the construction of up to 4, 500 megawatts (MW) of wind and solar power sources. This renewable energy will then be used to power electrolyzers capable of producing a staggering 200, 000 tonnes of green hydrogen annually.
The project team has a two-pronged approach for the produced green hydrogen. They plan to sell a portion to local industrial consumers within Oman. The remaining hydrogen will be processed into derivatives, such as green ammonia, for export through the existing port of Salalah.
Green hydrogen is seen as a game-changer in the global energy transition. Produced using renewable energy sources like wind and solar power, it offers a clean-burning alternative to traditional fossil fuels. This can significantly reduce greenhouse gas emissions and help mitigate climate change.
Actis brings to the table its experience in developing renewable energy projects. The firm currently manages a portfolio of over 21 GW of renewable energy capacity globally. Fortescue, on the other hand, is a pioneer in the green hydrogen industry, with multiple projects underway worldwide.
The consortium's win reflects Oman's strategic ambitions in the green hydrogen sector. The country's government established Hydrogen Oman (Hydrom), an independent entity, to spearhead the nation's green hydrogen strategy. Oman's strategic location between key green hydrogen demand centers in Europe and Asia, coupled with its existing infrastructure and logistics capabilities, positions it as a prime candidate for green hydrogen production.
The project's progress to the pre-FEED stage signifies a critical step towards realizing Oman's green hydrogen ambitions. The pre-FEED stage typically involves developing a more detailed project design, cost estimates, and risk assessments. This paves the way for securing financing and finalizing engineering plans before full-scale construction commences.
The Actis-Fortescue consortium's green hydrogen project in Oman is a promising development for the clean energy sector. With its large-scale production capacity and focus on both domestic consumption and export, the project has the potential to be a major driver in Oman's transition towards a more sustainable energy future.