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Siemens Energy signs Oman electrolyser deal

14 December 2023

Hydrogen Oman (Hydrom), a subsidiary of Energy Development Oman, has signed a memorandum of understanding (MoU) with Germany's Siemens Energy and Oman Investment Authority (OIA) to collaborate on the development of an electrolyser manufacturing facility in Oman.

The preliminary agreement is expected to lead to the development, construction and operation of an electrolyser manufacturing facility as part of the blueprint to localise the green hydrogen supply chain in the sultanate.

The MoU was signed on 12 December at the opening of the Green Hydrogen Summit Oman.

Over 10 green hydrogen projects are being planned in the sultanate, which has set a green hydrogen production target of at least 1 million tonnes a year (t/y) by 2030.

Hydrom conducted the first round of land block auctions for integrated green hydrogen projects in the sultanate last year.

In June, it signed land concession agreements for green hydrogen projects that will require a total of $20bn in investments. The contracts were awarded to the Danish-led Amnah consortium and a consortium led by South Korea's Posco and France's Engie.

On 12 December, Hydrom awarded a  third hydrogen block to a consortium known as SalalaH2 in line with the sultanate's goal to develop green hydrogen hubs.

The Salalah2 consortium comprises state-backed OQ Alternative Energy, Japan's Marubeni Corporation, UAE-based Dutco Overseas and South Korea's Samsung C&T.

According to Hydrom, the project is set to produce over 4GW of renewable energy for the production of green hydrogen. The project is estimated to produce a target of over 1 million t/y of green ammonia, with an expected production of over 175,000 tonnes of green hydrogen. 

Other projects being planned in Oman include the 25GW Green Energy Oman, located in Al-Wusta Governorate, and two BP green hydrogen schemes in Duqm and Dhofar.

Belgium's Deme Group and India's Acme Group also lead separate consortiums planning to develop green hydrogen projects in the sultanate.

None of the projects has reached financial investment decision so far, with pre-front-end engineering and design  (feed) work and offtake negotiations still under way.

Infrastructure company

In addition to signing the MoU for the establishment of an electrolyser plant, Hydrom also announced setting up an infrastructure company that will cater to the sultanate's emerging green hydrogen sector.

The infrastructure company's main stakeholders will comprise the Oman Electricity & Transmission Company (OETC), Nama Water Services, and the OQGN, the exclusive owner and operator of Oman's natural gas transportation network.

Second auction

On 13 December, Hydrom said it expects to receive bids for the second round of the sultanate's land auction for integrated green hydrogen projects on 28 January 2024.

It expects to award the contracts to successful bidders by the second half of 2024, Abdulaziz al-Shidhani, Hydrom managing director, tells the ongoing Oman Green Hydrogen Summit in Muscat.

"Hydrom offered three blocks for auction in the Dhofar region. When awarded, these will take the total green hydrogen production commitments close to our target of 1 million tonnes a year of green hydrogen by 2030," the executive said.

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Jennifer Aguinaldo

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