An international consortium plans to develop a green hydrogen and green ammonia plant in the Salalah Free Zone in Oman (SFZ).
The alternative energy business unit of Oman QO, the Japanese company Marubeni Corporation, Linde, headquartered in Ireland, and the Dubai Transport Company (Dutco) of the United Arab Emirates have signed a Joint Development Agreement (JDA) for the development of the SalalaH2 project.
The planned project includes the construction of an electrolysis facility with a capacity of up to 400 MW to produce green hydrogen.
The green hydrogen will be used as a feedstock to produce up to 1,000 tonnes per day of green ammonia using OQ’s existing ammonia plant in Salalah, OQ said.
About 1,000 MW of solar and wind power, produced by existing or new facilities, will be used to power the electrolyser facility, he added.
MEED understands that the consortium is carrying out studies that will serve as the basis for an investment decision.
Various sample streams will be explored and coordinated with the current purchaser of the OQ ammonia plant.
These include the “co-combustion needs of coal-fired power plants in Asia; the renewable raw material needs of fertilizer factories in Europe; and the decarbonization needs of the global shipping industry ”.
The CEO of alternative energy at OQ, Salim al-Hutaili, said that the agreement presents a unique opportunity “because the integration of the Salalah cluster between liquefied petroleum gas (LPG), methanol and ammonia brings already great synergies “.
The partnership reflects the company’s commitment to maximizing value and diversifying Oman’s economy in line with Vision 2040, he added.
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