Resource assessment underway at Hydrogen Duqm project site

7 March 2024
Resource assessment underway at Hydrogen Duqm project site

An evaluation of solar and wind resources – a critical first step in the development of any green hydrogen project – is currently underway in Block Z1-02 allotted to Hydrogen Duqm LLC in the Wilayat of Duqm, according to a high-level official associated with the project.

Christophe Comte, Senior Business Development (Hydrogen) at global low-carbon energy developer ENGIE, which is co-leading the Hydrogen Duqm project along with Korean steel conglomerate POSCO, said the landmark venture is a further affirmation of ENGIE’s longstanding commitment to Oman’s energy sector.

Participating in a panel discussion held as part of the Oman-French Energy Forum, hosted recently by the Oman-French Friendship Association (OFA), Comte stated: “ENGIE is very happy to see the very prudent and wise development of Oman in the field of green hydrogen. In the last few years, ENGIE's purpose has been to accelerate the transition towards a low carbon economy, not only with regard to its own activities, but also those of our partners and our stakeholders.”

He further added: “Here in Oman, our intention is to be aligned with Vision 2040 of Oman, and when we saw how the market was going to be structured, we really were very interested. We have already looked at hydrogen development for the last 10 years, and ENGIE has been one of the founding members of, the Hydrogen Council in Europe.”

Hydrogen Duqm LLC targets the production of 1.2 million tonnes per annum (tpa) of green ammonia for export to POSCO’s facilities in Korea. Around 5 GW of solar and wind capacity, supported by a Battery Energy Storage System (BESS), will provide renewable electricity for a 200,000 tpa hydrogen plant. Hydrogen output will be transported by pipeline to the Port of Duqm where it will feed an ammonia production facility.

Besides ENGIE and POSCO, Hydrogen Duqm LLC is also comprised of Samsung Engineering, Korea East-West Power Co (EWP), Korea Southern Power Co (KOSPO), and FutureTech Energy Ventures Company Ltd (a subsidiary of PTTEP).

“We are starting the resource assessment in the 300 km2 of land that is there,” said Comte, adding that ENGIE is also keen to discuss opportunities for collaboration across the entire ecosystem, extending from the generation of clean renewable energy to trading in green molecules or its derivatives. Furthermore, Hydrogen Duqm will also seek to support start-ups that come up with innovations to optimize hydrogen production, he noted.

A Final Investment Decision (FID) is anticipated by 2027, with the start of production and export targeted by 2030. “The project duration, from the start of operation, is 40 years, so we're looking really on a long term basis to develop the best possible project,” Comte added.

Also taking part in the panel discussion were: Philippe Marion, Hydrogen Line Director – EDF; Nayana Mady, ME Head of New Energies Business Development, Vallourec; Patrick Thienpont, Head of Water Department – Veolia, and CEO – Barka Desalination; and Ali Almoosawi, General Manager – AL SIG Oman (Air Liquide). Lionel Rabin, Founder & Managing Director – Haltiqa, was the Moderator.

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