Posted on 26 Jun 2023
French energy company Engie and South Korean steelmaker Posco expect to ship the first cargo of green hydrogen from their proposed Omani project in the second half of 2030, Kallanish reports.
The consortium led by the two companies was awarded on 22 June a land block (Z1-02) spanning 340km2 to build a green hydrogen/ammonia project in Duqm. The 47-year concession block contract granted by Oman’s Hydrom will host 5 gigawatts of wind and solar farms, a battery energy storage system and a hydrogen plant.
The project is planned to produce 200,000 tonnes/year of green hydrogen, which will be transported by a pipeline to the Special Economic Zone at the Port of Duqm to be converted into green ammonia. The partners expect 1.2 million t/y of green ammonia will be produced targeting the export market.
According to Engie, the commercial operation date is expected by 2030. Construction is scheduled to start in 2027, with first shipment of green ammonia to South Korea planned three years later. The 47-year contract with Oman foresees a seven-year development and construction phase, and a 40-year operational phase.
The partners say the project feeds into Engie’s aim of operating 4GW of electrolysis capacity by 2030 and Posco’s ambition for a green hydrogen-based steel business by 2050.
“The consortium will carry out the feasibility and technical studies, in order to finalise the total capital expenditure requirement for the project,” Engie says. The development is estimated at $6.7 billion.
Last December, Posco was reported to be mulling investing into green hydrogen-based direct reduction in Oman, which is fast becoming a hot-spot for green hydrogen projects (see Kallanish passim).
Source:Kallanish
