RIYADH: Saudi Arabian utility firm ACWA Power is aiming to start commercial operation of the Oman planned hydrogen project in the country’s Dhofar region before 2029, according to the company’s Executive Vice President and Global Head of Hydrogen Andrea Lovato.
ACWA is developing the integrated green hydrogen and ammonia facility, which is estimated to be worth $7 billion, in partnership with Oman’s state energy enterprise OQ and US-based Air Products.
The three companies signed a joint development agreement for the multibillion-dollar facility in May this year, amid a preliminary memorandum of understanding agreed in December 2021.
“It is an integrated project that will produce hydrogen – particularly very low carbon hydrogen,” Lovato told MEED.
“The intention is to replicate this process in several regions in order to reduce cost,” he said, adding: “Oman is the second one that has been announced and it is still in early stages. Commercial operations are expected to start in 2027 or 2028.”
The project is expected to replicate processes put in place for a similar hydrogen and ammonia facility being developed in the $500 billion futuristic city NEOM, being built in northwestern Saudi Arabia, according to Lovato.
The facility in NEOM is being developed by ACWA Power and Air Products in partnership with NEOM Co.
“An exact time has not been defined yet, only a general range. It is the second one that will use the same approach as NEOM,” Lovato, who is also the acting head of renewable development at ACWA Power, said.
The planned green hydrogen project, located in Salalah Free Zone, is expected to produce up to 1 million tons a year of green ammonia, OQ said in a tweet in December.
According to ACWA Power, the joint venture project will be based on “proven, world-class technology”, and include components like renewable power from solar, wind and battery energy storage, electrolysis plant, air separation unit, and green ammonia production facility.
The project partners are expected to have equal stakes in the green hydrogen-based ammonia production facility, MEED said.