A consortium consisting of six companies from three countries, led by Samsung Engineering, has obtained exclusive rights to develop green hydrogen in Oman.
Green hydrogen refers to the production of clean hydrogen by using renewable energy sources like solar and wind power to electrolyze water, without generating any carbon emissions.
On June 21 (local time), Samsung Engineering inked a contract with Hydrom and Duqm, securing the lease of a site in Muscat, Oman's capital, to spearhead the development and production of exclusive green hydrogen operations. Hydrom, an entity established by the Omani government to promote the green hydrogen industry, is a partner in this endeavor.
Samsung Engineering, in collaboration with POSCO Holdings, Korea Southern Power, Korea East-West Power, France's ENGIE (a clean energy company), and Thailand's PTTEP (an oil and gas exploration and production company), participated in a global consortium bidding process, ultimately emerging as the chosen operator.
The consortium, spearheaded by Samsung Engineering, has been granted the exclusive rights to develop and produce green hydrogen for the next 47 years in Duqm, Al Wusta, located approximately 450 km southwest of Muscat.
The secured site encompasses an area of about 340 km2, which is roughly half the size of Seoul. Its strategic location allows for the establishment of a renewable energy complex that can make use of existing infrastructure such as roads and ports in the nearby Duqm Special Economic Zone.
The consortium's plan entails the creation of a 5GW renewable energy complex on the site, with an annual production capacity of 220,000 tons of green hydrogen. A significant portion of the locally produced green hydrogen will be synthesized with 1.2 million tons of ammonia to facilitate safe and efficient transportation. This hydrogen will be shipped to Korea, where it will be utilized for hydrogen reduction steelmaking and the generation of clean, carbon-free electricity. Some of the produced green hydrogen will also be utilized within Oman.
The ammonia synthesis plant is set to be constructed in the Duqm Special Economic Zone, taking into account the ease of maritime transportation. The consortium aims to commence the construction of renewable energy facilities, green hydrogen plants, and ammonia synthesis plants in 2027, with a projected completion date of 2030, following a future business development phase.
In the age of energy transition, Samsung Engineering is focusing its efforts on acquiring cutting-edge technologies and advancing business opportunities in the hydrogen and ammonia sectors, with the aim of addressing societal challenges and fortifying the foundation for sustainable long-term growth.
Meanwhile, Samsung Engineering is expanding its business prospects by leveraging its network with major international clients while forging partnerships with domestic and foreign companies. Notably, the H2biscus project, a collaborative initiative with both domestic and foreign entities, involves the production of clean hydrogen in Malaysia for importation to Korea.
