An international consortium comprised of the alternative energy business unit of OQ, Marubeni Corporation, Linde, and Dutco has all signed a Joint Development Agreement (JDA) for the development of green hydrogen and green ammonia project at Salalah Free Zone (SFZ).
The project, named ‘SalalaH2’, targets the production of up to 1000 tons per day of green ammonia, utilizing OQ’s existing ammonia plant in Salalah. An electrolysis facility with a capacity of up to 400 MW will be constructed to produce green hydrogen. Approximately 1 GW of solar and wind energy, produced either by existing or new facilities, will be used to power the electrolyzer.
The Consortium is currently conducting studies that will provide the basis for an investment decision. Various offtake streams will be explored and coordinated with the OQ ammonia plant’s current off-taker including the co-firing needs of coal-fired power plants in Asia, the renewable feedstock needs of fertilizer plants in Europe, and the decarbonisation needs of the global shipping industry.
Salalah enjoys rich solar and wind resources supported by a world-class shipping infrastructure at the Port of Salalah; all of which position the region to be a global hub for the production and export of green hydrogen and green ammonia.
The project is set to create a positive impact on Oman’s national economy through the diversification of its energy infrastructure, the transformation of its skills base, and the transfer of new technologies into the region.