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Deal signed for world-class green ammonia project in Oman

28 May 2022 By GULAM ALI KHAN

The multibillion-dollar ammonia project, which is envisioned for Salalah Free Zone, will be powered by renewable energy

Muscat – Oman’s integrated energy group OQ, American industrial gases firm Air Products and Saudi-based energy company ACWA Power on Thursday signed a joint development agreement (JDA) to set up a world-class green hydrogen-based ammonia production facility in Oman.

The multibillion-dollar ammonia project, which is envisioned for Salalah Free Zone, will be powered by renewable energy in the sultanate. The JDA signing follows a memorandum of understanding (MoU) signed by the three partners in December 2021.

The joint venture project would be based on proven, world-class technology and include: the innovative integration of renewable power from solar, wind and storage; production of hydrogen by electrolysis; production of nitrogen by air separation; and production of green ammonia.

It is anticipated that the green hydrogen-based ammonia production facility in Salalah would be equally owned by the project partners, according to a joint press statement issued by Air Products, OQ and ACWA Power.

Air Products chairman, president and CEO Seifi Ghasemi, said, “We are delighted and honoured to work with the government of Oman to develop this multibillion-dollar project, which would be similar to the world-scale green hydrogen project we are implementing with our partners in NEOM in Saudi Arabia. We look forward to applying our know-how, technology and more than 60 years of experience in hydrogen to help move this project forward and take another significant step in decarbonising the world.”

OQ chairman Mulham al Jarf said, “We are proud of our partnership with ACWA Power and Air Products. This project positions OQ as an energy transition enabler, while playing on our strengths and leveraging our expertise in the downstream chemicals business, particularly in Salalah where we have extensive operations, and our demonstrated ability to off-take products and competitively deliver them to global customers. The project fits well with the sultanates’ renewable energy strategy and fosters investments in alternative energy resources, both of which contribute to Oman Vision 2040.”

ACWA Power’s chairman Mohammad A Abunayyan, said, “As a company that is driving the transition towards a greener future through utilising cutting-edge technologies and innovative solutions, we are extremely proud to support the government of Oman’s ambition to pursue decarbonisation and advance the development of green hydrogen, considered to be the fuel of the future.”

He said Oman continues to be a key market for ACWA Power for its potential, resources and location, making it a tremendous enabler for the production of green hydrogen. “The signing of the joint development agreement is another milestone and signifies the continued trust being placed in ACWA Power by all our partners in bringing this ambitious project to life.”

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