Hydrogen Oman (Hydrom) has awarded the rights to develop, build, own and operate a large green hydrogen project in Oman, to a consortium between Actis, a leading global investor in sustainable infrastructure, and Fortescue, a global integrated green energy company.
Hydrom announced the consortium was a winning bidder in the second round of a green hydrogen tender process. This provides Actis and Fortescue with exclusive rights to a high quality site, allocated to the development of a future project.
The project, which is currently in feasibility stage, is expected to involve construction of up to 4.5GW of wind and solar renewable energy resources that will power electrolyzers with the potential to produce up to 200,000 tons of green hydrogen per year.
Under the current plan, this is expected to be sold to local industrial offtakers as well as processed into derivatives, such as green ammonia, for export via the existing port of Salalah.
HE Eng Salim bin Nasser Al Aufi Minister of Energy and Minerals, Chairman – Hydrom
“Oman is strategically located between two key green hydrogen demand centers in Europe and Asia. This, in addition to, our tier-1 infrastructure and logistics capabilities have enabled us to leverage our first mover advantage in the global hydrogen industry. The availability of renewable natural resources in Oman coupled with the country’s favorable geopolitical positioning, investor-friendly policies and progressive energy transition strategies make it one of the most suitable countries for green hydrogen production. I would like to congratulate Actis and Fortescue on their awarding and look forward to working together to realize our collective vision.”
Fortescue and Actis are both major players in the green energy space globally. Actis has an extensive track record developing renewable power projects, with 21GW of renewable energy capacity, 16GW operational, 5GW under construction or contracted, managed by the firm to date.
While, Fortescue is a global leader and innovator in the green hydrogen industry with a pipeline of projects globally, including three which have reached Final Investment Decisions.
Fortescue and Actis both believe a successful green hydrogen sector is a prerequisite for a successful transition away from fossil fuels and towards the decarbonization of many hard-to-abate sectors.
This successful bid award represents an exciting milestone in Actis’ hydrogen journey. The project itself is a compelling investment opportunity to develop a major green hydrogen project, to be underwritten by strong demand for offtake, a stable and supportive regulatory environment and a prime strategic location, Oman has first rate solar and wind resources, and an ideal location from which to export green hydrogen derivatives to major demand centers in Europe and Asia.
The appeal and bankability of the project is underscored by the strong appetite and interest from high-quality lenders: the consortium has received significant support from prominent institutions keen to participate in the financing of the project.
Moataz Kandil, MENA President at Fortescue, stated that, “Actis and Fortescue are completely in sync with our ambitions to decarbonize and create a new green energy industry globally. We share a common vision for the pivotal role that green hydrogen and green ammonia will play in forging a sustainable future. Oman not only has great natural resources, but it is also in an ideal location for export and has set up the structures and regulations needed to help enable this industry to flourish.”
“This strategic partnership between Hydrom, Actis and Fortescue will not only help to drive the development of a large-scale green hydrogen project in Oman, but will lead the way for others around the world to follow, cementing Oman as a powerhouse in green molecules,” Kandil added.
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