Meed | Hydrogen-to-steel project eyes investment decision

Hydrogen-to-steel project eyes investment decision

14 December 2023

The Amnah consortium, which won the first land block contract that Hydrogen Oman (Hydrom) auctioned this year, aims to achieve financial investment decision by 2026.

The estimated $6bn-$7bn project will be looking to supply green hydrogen to domestic and overseas steel producers, Amnah project director, Mark Geilenkirchen, told MEED on the sidelines of the Green Hydrogen Summit Oman

Geilenkirchen said they are talking or planning to talk to all steel players that have a decarbonisation strategy and which will require green hydrogen and green electricity to power their plants and facilities.

The executive, who previously served as CEO of Sohar Port and Freezone, also confirmed that Amnah aims to reach commercial operation of its planned $6-$7bn facility in Duqm by 2030.

Denmark-based global fund manager Copenhagen Infrastructure Partners (CIP) is the main shareholder in Amnah. The other shareholders are. renewable energy specialist Blue Power Partners (BPP), also of Denmark, and Al-Khadra, part of Oman’s Hind Bahwan Group.

The planned integrated facility is expected to have a capacity of 220,000 tonnes a year (t/y) of green hydrogen and require up to 4.5GW of renewable energy capacity.

Unlike other projects in the region that aim almost exclusively to export their green hydrogen derivative products, such as ammonia, Amnah is inclined towards converting or using green hydrogen into sustainable steel.

"The steel industry predominantly uses gas as feedstock. The use of green hydrogen as an alternative fuel will not only help abate the carbon footprint of the steel industry, it will also support in-country value creation," the executive said, referring to Oman's programme that aims to increase local input in projects.

The 320-square-kilometre land block, which Amnah won, is located in Duqm, with the downstream facilities of the project expected to be established at the Port of Duqm.

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Jennifer Aguinaldo