Oman Has Begun the First Round of Bidding for Green Hydrogen Licenses

Oman has announced its first green hydrogen bidding in an attempt to meet its 2030 target of generating one million tonnes of hydrogen as well as its variants. The tenders, which were announced on Sunday, would result in the sultanate giving up to six land plots on which businesses can create fully integrated green hydrogen facilities.

The projects comprise renewable power generation, electrolyzer capacity, and any accompanying infrastructure needed to convert hydrogen into other commodities such as methanol and ethanol. Winning bidders must also acquire their respective off-takers for their venture, which must be designed to provide a competitive LCOH.

This might not be as difficult as it is elsewhere in the world. The Arab peninsula receives plenty of sunlight and has wind speeds of up to 9.7 meters per second along its shore. Higher capacity factors on renewable energy sources mean that electrolyzers can lower the LCOH.

Oman, which is wealthy in oil, recently announced a strategy to reach net zero emissions by 2050 and is already striving to diversify its economy away from oil and gas. Without subsidies, the developers of the green hydrogen program intended as part of Saudi Arabia’s NEOM effort were able to secure Air Products as a collaborator and off-taker for the initiative’s production.

Companies participating in the green hydrogen contracts will be required to bid as consortiums and then collaborate with a government-owned firm after their land plot is granted. The due for the first round of entries in Duqm will be January 2023. A further two to four blocks in Salalah’s seaside city will be placed for auction in May 2023, with the beneficiaries revealed in December.

Oman intends to generate up to 3.75 million tonnes per year by 2040, with a goal of increasing to 8.5 million tonnes by 2050. Oman intends to use H2 to meet domestic consumption while also shipping hydrogen and byproducts to Asia and Europe.

The sultanate had predicted that it might create up to 1GW of green and blue hydrogen by 2025, then 30GW by 2040, but no blue hydrogen objectives appear to have been set. Blue hydrogen is produced using fossil fuels as well as carbon capture and inventory.

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