OQAE to get 25% stake in future renewable projects in Oman
This commitment will cover all future solar and wind projects (and potentially other alternative energy schemes as well) starting with the Ibri III Solar PV project – a 500 MW scheme slated for implementation in Al Dhahirah Governorate.
Parent company OQ – the wholly state-owned global integrated energy group of the Sultanate of Oman – made the revelation in its newly published 2024 Annual Report.
It said: '... OQAE secured up to 25 per cent stake in all future renewable energy projects floated by Nama Power and Water Procurement (NPWP), who is the single procurer of power and water capacity in the Sultanate of Oman, starting with 'Ibri –III' solar PV project with a capacity of 500 MW.'
Under current laws governing the procurement of Independent Water / Power Projects (IWPP / IPPs) in Oman, developers can own up to 100 per cent of the share capital in the founding company that successfully bids for an IPP, IWP or IWPP. However, the founding company is required to, within four years of its incorporation, offer 35 per cent of its share capital for public subscription via an Initial Public Offering (IPO) on the local bourse. Industry experts point out that a stake of up to 25 per cent now earmarked for OQAE is expected to be carved out from this share slated for public subscription.
In its report, OQ emphasized OQAE's strategic role in driving Oman's energy transition. 'OQ Alternative Energy (AE) serves as the cornerstone of OQ's energy transition efforts and a catalyst to achieve the national objectives for carbon neutrality by 2050. This is aligned with Oman's Vision 2040. Appointed by the government as 'The National Champion for Renewable Energy', OQAE is committed to placing decarbonisation at the heart of its strategy, focusing on the decarbonisation of OQ assets and, ultimately, the decarbonisation of Oman.'
According to the parent company, OQAE is actively advancing renewable energy projects, with over 7 GW of energy initiatives in its pipeline. They include projects designed to support the decarbonisation of OQ Group subsidiaries and affiliates, as well as industries operating in Suhar, Duqm and elsewhere.
In line with its mandate as National Champion, OQAE is also supporting Petroleum Development Oman (PDO) in the decarbonisation of its oilfield operations. In 2024, OQAE signed long-term Power Purchase Agreements (PPAs) with PDO covering the output of three upcoming, mid-scale renewable projects under development within the latter's Block 6 concession. The projects concerned are the 100MW North Solar, and Riyah-1 and Riyah-2 wind schemes each of 100 MW capacity.
Also notable is OQAE's significant role in fostering the growth of Oman's ambitious green hydrogen industry. The company is a strategic partner in three of the eight green hydrogen projects firmed up for implementation so far.
In 2024, OQAE onboarded BP as a partner in the Hyport Duqm project, which targets the initial production of 60,000 tonnes of green hydrogen, corresponding to 330,000 tonnes of green ammonia every year. This output will support the energy transition of the transportation and heavy industry sectors.
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