The project includes the construction of an electrolysis facility with the capacity to produce green hydrogen. Credit: MEED.

An international consortium plans to develop a green hydrogen and green ammonia plant in Oman’s Salalah Free Zone (SFZ).

The alternative energy business unit of Oman’s OQ, Japan’s Marubeni Corporation, Ireland-headquartered Linde and the UAE’s Dubai Transport Company (Dutco) have signed a joint development agreement (JDA) for the development of the project, SalalaH2.

The planned project entails the construction of an electrolysis facility with a capacity of up to 400MW to produce green hydrogen.

The green hydrogen will be used as feedstock to produce up to 1,000 tonnes a day of green ammonia utilising OQ’s existing ammonia plant in Salalah, OQ said.

Approximately 1,000MW of solar and wind energy, produced either by existing or new facilities, will be used to power the electrolyser facility, it added.

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MEED understands the consortium is conducting studies that will provide the basis for an investment decision.

Various offtake streams will be explored and coordinated with the OQ ammonia plant’s current off-taker.

These include the ‘co-firing needs of coal-fired power plants in Asia; the renewable feedstock needs of fertiliser plants in Europe; and the decarbonisation needs of the global shipping industry’.

CEO of alternative energy at OQ, Salim al-Hutaili, said the deal presents a unique opportunity ‘as the integration of the Salalah cluster between liquefied petroleum gas (LPG), methanol and ammonia is already bringing great synergies’.

The partnership reflects the firm’s commitment towards maximising value and diversifying Oman’s economy in line with Vision 2040, he added.

Energy Transition in the Middle East    

A major new report from MEED looks at how the global shift away from fossil fuels is reshaping energy policy in the Middle East and North Africa, and its impact on business and project investment.

Learn more about the report here

This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here.