Oman's OQAE plans green hydrogen pilot in Duqm
MUSCAT: OQ Alternative Energy (OQAE), a subsidiary of OQ Group, is developing a pilot-scale green hydrogen project designed to equip the company with practical experience essential to fulfilling its role as Oman's National Champion for Alternative Energy.
The state-owned entity said the pilot, featuring an electrolyser capacity of 10 – 15 MW, is proposed to be established in the Special Economic Zone at Duqm (SEZAD).
'This initiative will provide hands-on experience in executing and operating green hydrogen projects, testing real-world applications, and generating insights for future large-scale hydrogen developments,' OQAE revealed in the newly published 2024 Sustainability Report of parent holding company OQ Group.
The announcement comes as OQAE presses ahead with the delivery of a substantive pipeline of green hydrogen projects, renewable solar and wind energy schemes, and a plethora of other clean energy initiatives entailing several billions of dollars in investments over the coming years.
On Monday, May 12, 2025, the company signed pacts to progress, finance and collaborate on an array of renewable and clean energy initiatives involving investments totalling around $2 billion. The list includes the 100 MW North Solar plant in Saih Nihaydah in northern Oman, and two 100 MW wind farms—Riyah-1 and Riyah-2—located in the Amin and West Nimr fields in the south; a 700 MW renewable energy project to power United Solar's polysilicon plant in Suhar, a 500 MW renewables scheme for Jindal; a 140MW renewable energy project with Oxy Zero in Block 9, and a 105 MW renewable energy project with Vale. They are part of a renewable energy pipeline of up to 7 GW across Oman.
Furthermore, OQAE has secured a commitment from Nama Power and Water Procurement Company (Nama PWP), the sole procurer and offtaker of electricity generation and desalinated water capacity, to obtain up to a 25 per cent stake in future Independent Power Projects (IPPs).
'This has significantly expanded OQAE's customer base, which now includes oil and gas operators, industrial clients, and direct power demand through NPWP projects,' parent company OQ Group noted in its Sustainability Report.
Importantly, OQAE is positioned to play a leading role in the delivery of Oman's long-term green hydrogen strategy. The company continues to work with key stakeholders in advancing three large-scale green hydrogen schemes, which will account for a significant share of the country's target to produce at least 1 million tonnes per annum of green hydrogen molecules by 2030.
Key projects backed by OQAE thus far are: HYPORT Duqm, a joint venture with DEME & BP featuring 1.3 GW of renewable capacity in SEZAD; Green Energy Oman (GEO), a collaboration with InterContinental Energy, Enertech Holding Company, and Shell to supply approximately 4 GW of green power, with proposed downstream and export facilities in the SEZ at Duqm; and SalalaH2, a joint venture with Marubeni, Samsung C&T, and Dutco, bringing 3.8 GW of renewable energy capacity to Dhofar.
'Beyond production, OQAE is also diversifying market opportunities by exploring alternative vectors and downstream applications to drive demand. This includes positioning Oman as a global hub for low-carbon bunkering, piloting e-fuel projects such as e-Gasoline and e-SAF, leveraging biogenic CO2 for e-Methanol, and developing an e-NG facility utilising green hydrogen and CO2 through methanation,' the company added in the report.
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