BP to potentially develop multiple gigawatts of clean energy projects in Oman

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BP and Oman will potentially develop multiple gigawatts of renewable energy and green hydrogen projects in Oman by 2030, supplementing the British major’s gas business in the biggest oil producer in the Middle East outside OPEC.

BP and Oman’s ministry of energy and minerals signed a strategic framework agreement that will include the evaluation of wind and solar data from 8,000 sq km of land – an area more than five times the size of London, the British major said in a Jan. 17 statement. The agreement will support Oman in approving future development of renewable energy hubs at locations across this area, BP added. 

“In partnership with BP, we will progress the development of new, world-class solar and wind resources – generating renewable power for the grid and powering the manufacture of green hydrogen to supply domestic demand and to export to global customers,” Oman’s minister of energy Mohammed al-Rumhi said in the statement. 

BP currently operates Block 61 in Oman, which produces a third of the country’s gas demand. BP is also a member of Oman’s national hydrogen alliance, which groups 13 stakeholders who will collaborate in the refining and transportation of hydrogen, as well as its domestic use and export. BP has also established a net-zero task force to help develop a “roadmap” for the British major in Oman. “This partnership represents a significant evolution of BP’s business in Oman and is aligned with BP’s strategy, which includes rapidly growing our developed renewable generating capacity and to take early positions in hydrogen,” BP said in the statement. 

BP plans to integrate its large-scale renewable power pipeline, targeting 50 GW of renewable development by 2030, with hydrogen projects, along with leveraging its trading and shipping capability to drive costs down, vice president for hydrogen market development Sally Prickett had said in an interview at the S&P Global Platts Hydrogen Markets Europe Conference Nov. 25. 

BP has several electrolyzer projects centered around some of its European refineries, as well as a large-scale blue hydrogen project in Teesside that’s part of an industrial decarbonization cluster in the UK. Platts assessed Hydrogen Oman PEM Electrolysis (incl CAPEX) at $4.6559/kg Jan. 14, up by 0.02% on the day. 

Meanwhile, Saudi Arabia’s ACWA Power, Oman’s state-owned energy company OQ and US-based Air Products have signed an agreement to explore developing a hydrogen project in the sultanate’s southern governorate of Dhofar. ACWA Power is involved in Saudi Arabia’s $6.5 billion green hydrogen and ammonia project that is being developed with futuristic, zero-carbon city Neom and Air Products. Saudi Arabia’s sovereign wealth fund has a 44% stake in ACWA Power. 

Oman is in talks with investors to build green ammonia and hydrogen projects in three free zones, a government official said Aug. 23. The country’s Public Authority for Special Economic Zones and Free Zones is currently negotiating with several international companies that have expressed interest in establishing projects to produce green hydrogen and ammonia in Duqm, Salalah, and Sohar, Jalal al-Lawati, an official from the authority said in a statement. 

Oman is accelerating efforts to develop clean energy products as it seeks to supplement its energy industry and cater to the global demand for green ammonia and hydrogen. The authority has already signed a land reservation agreement with India’s renewables company ACME Solar Holding Private Ltd. to develop a green hydrogen and ammonia project in Duqm free zone in the south. 

Meanwhile, German energy company Uniper will join Oman’s Hyport Duqm renewable hydrogen project to provide engineering services and negotiate an exclusive offtake agreement for green ammonia from the facility, Uniper said July 19. Also, InterContinental Energy launched a 25-GW project in Oman focused on green ammonia exports, adding to its 26-GW project in development in Australia, the company had said May 18, 2021. It is partnering in a consortium with OQ and Kuwaiti government-backed energy investor and developer EnerTech on the project.

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