Published on 21st May 2021
Oman plans to build one of the largest green hydrogen power plants globally, as Middle Eastern countries are stepping up their efforts to generate a fuel that is seen as critical to the clean energy transition.
Oman Oil firm OQ SAOC, InterContinental Energy Ltd. of Hong Kong, and EnerTech of Kuwait will be partners on the project, which will be powered by 25,000 megawatts of wind and solar energy, according to OQ.
Co-founder and president of InterContinental Energy, Alicia Eastman, told Bloomberg that the project to produce hydrogen from renewable electricity might cost around US$30 billion.
According to InterContinental Energy, no funding has been sourced yet, and a final investment decision is not expected until 2026.
The facility will necessitate the sultanate's transformation from a renewable energy slug to one of the region's largest. According to the International Renewable Energy Agency, it has 159 megawatts of installed renewable energy capacity.
When renewable energy is used to break water molecules, green hydrogen is generated. Many countries, including Oman, are planning to develop blue hydrogen, a form of natural gas-based fuel with carbon dioxide captured as a byproduct.
Today, the demand for hydrogen, which is seen as environmentally friendly since it generates only water vapor when burned, is small. However, by 2050, it could be worth $700 billion per year. Saudi Arabia and the United Arab Emirates are among the other countries in the region with green hydrogen ambitions.