JUNE 23, 2023

HYPORT Duqm to double green ammonia capacity in Phase 2

The government signed a landmark Project Development Agreement with the HYPORT Duqm consortium on Wednesday for the implementation of a multi-billion dollar green hydrogen project at the Special Economic Zone (SEZ) in Duqm.

One of six so-called ‘legacy projects’ that were initiated before the launch of the country’s hydrogen regulatory framework last October, HYPORT Duqm is backed by a consortium comprising OQ Alternative Energy (part of Oman’s OQ Group) and DEME Concessions NV, a leading Belgian-based global marine infrastructure and offshore energy giant.

Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals and Chairman of Hydrom (the orchestrator and master-planner of Oman’s green hydrogen industry), signed the landmark pact on behalf of the government. Representing the HYPORT Coordination Company were Najla bint Zuhair al Jamali, Chief Executive of Alternative Energy at OQ, and Martin D’Uva, Managing Director of DEME Concessions.

This week’s Project Development Agreement builds on commercial term sheets signed by the two sides in March this year. Green hydrogen output in the project’s first phase is projected at 50,000 tonnes per annum (tpa) starting in 2029 – volumes that will contribute to the production of around 330,000 tpa of green ammonia, rising to 650,000 tpa during the second phase.

Renewable power for the project will come from a combination of solar and wind capacity estimated at 1.3 gigawatts (GW) in Phase 1, rising to 2.7 GW in Phase 2. The upstream elements will be developed on 150 sq km of land allotted within the SEZ at Duqm.

Welcoming the signing of the agreement, Najla al Jamali, Chief Executive of OQ Alternative Energy, said: “Together with DEME, we are pleased to sign this agreement to develop the HYPORT Duqm project in the Special Economic Zone, a global centre to produce green hydrogen, which combines renewable energy, manufacturing, downstream and logistics activities with a focus on decarbonisation efforts and electricity production.”

Martin D’Uva, Managing Director DEME Concessions, added: “After nearly three years of joint development with our partner OQ, we are thrilled to accelerate our transformative journey towards a green hydrogen-powered future and to support Oman in achieving its ambitious green energy targets, while strengthening DEME’s long-term presence in Oman. The project will harness the immense potential of hydrogen as a clean and versatile energy carrier, leveraging Oman’s strategic location and abundant renewable resources to establish a robust green hydrogen ecosystem.”

Wednesday’s pact will pave the way for detailed engineering work to commence in earnest on the HYPORT Duqm project, followed by the start of construction of the renewable power components in the upstream areas, and the green hydrogen (electrolyser) and green ammonia plants closer to the Port of Duqm.