Oman’s Pioneering Role in Green Hydrogen Production

March 22, 2024

This month, an offtake agreement between a European consumer and an Indian manufacturer in Oman marked an important milestone for hydrogen produced using renewable power.

Yara, a Norwegian fertilizer and industrial chemicals supplier, signed a long-term contract with ACME Cleantech Solutions Pvt. Ltd. to deliver 100,000 tonnes per annum (mtpa) of ‘green’ ammonia commencing in early 2027.

ACME will shortly begin building a fully integrated factory spanning 12 square kilometers in the Special Economic Zone at Duqm (SEZAD) on Oman’s central coastline. It is the first large deal between unaffiliated companies for green ammonia, and it represents a significant step forward for Oman.

As carbon-free hydrogen becomes more widely available, it is evident that businesses must now deal with more than just demand risk. They are attempting to adapt to rules at the early design process in order to comply with the European RFNBO standards under RED II and III, which establish the conditions under which hydrogen products will be considered compliant.

However, these ‘green’ certification criteria are increasing in several locations, including Asia, adding complexity to project design and prompting enterprises in Oman and elsewhere to proceed with caution.

“The pre-certification work, to stress test what will be the certification, the degree of greenness of the molecules if we would export them to Europe, has been essential,” said Stefani Giuseppe, General Manager Green Hydrogen, DEME Concessions NV, speaking at the World Hydrogen MENA conference in Dubai last month. “It’s one of the pieces of the puzzle we need before investing further in the project,” he said.   

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