Latest news with #TheEnergyYear
Observer
4 days ago
- Business
- Observer
Oman accelerates green hydrogen technology localisation
MUSCAT, JULY 18 Hydrom, the architect of Oman's green hydrogen sector, has reported significant progress in the localisation of technology and manufacturing capacity linked to the vast volumes of solar panels, wind turbines, electrolysers and other essential hardware needed to meet the country's ambitious green hydrogen targets. A number of green hydrogen projects currently in early development across Al Wusta and Dhofar governorates are expected to commence operations by around 2030, contributing to Oman's goal of producing 1 million tonnes of low-carbon molecules annually by that time. Achieving this target will require approximately 40 million solar panels and up to 3,000 wind turbines — equipment that will nearly triple the country's current grid capacity, according to Eng Abdulaziz Al Shidhani, Managing Director of Hydrom. 'To reach our 2030 targets, we're proactively enabling this expansion by laying the necessary groundwork now. With project contracts signed for up to 47 years, the momentum is clear and investors are taking note,' Al Shidhani said in an interview with The Energy Year, a UK-based energy news platform. The official also emphasised that technology localisation is central to Hydrom's strategy. 'We've signed MoUs with electrolyser manufacturers, including Siemens Energy and ThyssenKrupp Nucera. These partnerships support our industrial ambitions, including polysilicon production and the local manufacturing of solar panels and wind turbines. Suhar is set to host solar panel production, while Al Duqm will see wind turbine assembly'. Over the past year, Suhar has attracted over a billion dollars in new Chinese-led investments in large-scale solar panel and module manufacturing facilities, aimed primarily at serving domestic and regional markets. Additionally, United Solar Polysilicon (FZC) SPC, an international green energy company, is making rapid progress on a $1.6 billion polysilicon plant with a capacity of 100,000 tonnes per annum, located in Suhar Industrial City. Alongside its efforts to build a robust green hydrogen production sector, Hydrom is actively supporting the development of supply chains and a broader ecosystem around the green molecule. As part of this drive, Hydrom hosted a Green Hydrogen Ecosystem Readiness Lab last September, bringing together 58 government entities. 'We identified 26 strategic initiatives grouped into five core areas: logistics and infrastructure readiness, regulatory streamlining, technology localisation, workforce capacity building and domestic market development. These initiatives are being actively tracked and managed through our green hydrogen acceleration dashboard, gH2ad, which ensures transparency, promotes accountability and keeps all stakeholders aligned towards shared goals', Al Shidhani explained. (gH2ad refers to green hydrogen, ammonia and derivatives — including green ammonia, green methanol, synthetic fuels (e-fuels) and LOHCs or liquid organic hydrogen carriers). Hydrom is also working closely with free zone authorities to allocate suitable plots for investments in downstream green hydrogen conversion and other value-added industries. 'We coordinate closely with free zone authorities to align policy and infrastructure. For instance, Vulcan Green Steel and others are planning green steel projects that will rely on hydrogen supply chains originating from outside the free zones', he said. Meanwhile, preparations are underway to manage the massive volumes of hardware that the green hydrogen sector will require — most of which will be imported in the early years — and ensure its seamless transport to designated sites. The Port of Duqm, which previously handled the arrival of wind turbines for Dhofar's first wind farm in 2019, will continue to serve as a gateway for such equipment. 'We've assigned ASYAD to lead logistics, focusing on three key initiatives: conducting a readiness assessment, implementing a control-tower approach to manage scheduling from port to site and coordinating with ongoing oil and gas activities. We are piloting our plan with the recently signed 100-MW PDO Riyah-1 and Riyah-2 wind farm projects in Al Duqm, allowing us to learn and adapt as needed', Al Shidhani added.
Zawya
6 days ago
- Business
- Zawya
New mechanisms to bolster appeal of Oman's Round 3 hydrogen auction
MUSCAT - Hydrom, the state-owned entity overseeing Oman's green hydrogen strategy, has introduced a series of mechanisms and incentives aimed at generating stronger investor interest in the third round of auctions for green hydrogen development blocks. Launched in April 2025, Round 3 centres on a 300 sq km land block in Duqm. Prospective developers may bid for a minimum of 100 sq km, with the flexibility to define their project footprint within the block. This approach allows bidders to tailor configurations in line with their strategies and market outlook. According to Abdulaziz al Shidhani, Managing Director of Hydrom, the latest round has been designed with enhanced flexibility to better align with investor expectations. 'We offered a 300-square-kilometre block where bidders can propose developing a third, two-thirds, or the entire area, depending on their capabilities. We can award the land to one, two, or three developers. Strategically, the message is that Oman is committed yet agile,' he told The Energy Year, a UK-based energy news portal. Crucially, Hydrom has embedded several new features into the auction process to elicit a stronger investor response. 'We're introducing mechanisms such as a double-sided auction with a contract-for-difference model, and a downstream auction aimed at domestic industry,' Al Shidhani explained. 'These initiatives are designed to stimulate local hydrogen demand by bridging the price gap between suppliers and buyers. We're also allowing phased project development. Instead of delivering the full 50,000 tonnes per year within seven years, developers can start small and scale up.' Additional incentives—yet to be disclosed—will reward developers that meet specific milestones, he noted. 'Importantly, only 4 per cent of Oman's 50,000-square-kilometre hydrogen potential has been allocated so far. We're serious about scaling but also balanced about risk,' he added. While optimism surrounds the auction, Al Shidhani acknowledged ongoing challenges facing the global hydrogen industry, such as political transitions and policy delays in key markets including Germany and Japan. One critical challenge being addressed by Hydrom is the imbalance between global hydrogen supply and demand. 'We're tackling this through government-to-government agreements with Japan, South Korea, Germany, the Netherlands, Belgium, and Singapore,' he said. 'These aren't just MoUs—we conduct workshops, run joint studies, and have launched the world's first liquid hydrogen corridor with partners in Germany and the Netherlands.' Domestically, Hydrom is also focusing on building a viable local market for hydrogen. 'We're exploring downstream applications and support tools like the double-sided auction model to make green hydrogen affordable for local industries without undermining competitiveness,' he said. 'We're not waiting for perfect conditions—we're pushing ahead with real engagements and infrastructure planning.' Also aiding investor convenience is a streamlined permit system that consolidates approvals across multiple government agencies. 'We had a major breakthrough with the single automatic permit system,' Al Shidhani said. 'Previously, developers needed clearances from 36 entities. That's now down to just nine. Through the newly launched Oman platform, once a project is approved, developers receive access to all requirements, and full land access is granted the next day. This automated system has dramatically reduced administrative bottlenecks.' While underscoring Hydrom's central role in orchestrating Oman's green hydrogen ambitions, Al Shidhani emphasized that the success of the sector depends on collective action. 'Hydrom remains the coordinator, but success hinges on ecosystem partners delivering on their responsibilities,' he said. 'We expect our first hydrogen plant to be operational between 2029 and 2031.' 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Observer
15-07-2025
- Business
- Observer
New mechanisms to bolster appeal of Oman's Round 3 hydrogen auction
MUSCAT, JULY 15 Hydrom, the state-owned entity overseeing Oman's green hydrogen strategy, has introduced a series of mechanisms and incentives aimed at generating stronger investor interest in the third round of auctions for green hydrogen development blocks. Launched in April 2025, Round 3 centres on a 300 sq km land block in Duqm. Prospective developers may bid for a minimum of 100 sq km, with the flexibility to define their project footprint within the block. This approach allows bidders to tailor configurations in line with their strategies and market outlook. According to Abdulaziz al Shidhani, Managing Director of Hydrom, the latest round has been designed with enhanced flexibility to better align with investor expectations. 'We offered a 300-square-kilometre block where bidders can propose developing a third, two-thirds, or the entire area, depending on their capabilities. We can award the land to one, two, or three developers. Strategically, the message is that Oman is committed yet agile,' he told The Energy Year, a UK-based energy news portal. Crucially, Hydrom has embedded several new features into the auction process to elicit a stronger investor response. 'We're introducing mechanisms such as a double-sided auction with a contract-for-difference model, and a downstream auction aimed at domestic industry,' Al Shidhani explained. 'These initiatives are designed to stimulate local hydrogen demand by bridging the price gap between suppliers and buyers. We're also allowing phased project development. Instead of delivering the full 50,000 tonnes per year within seven years, developers can start small and scale up.' Additional incentives—yet to be disclosed—will reward developers that meet specific milestones, he noted. 'Importantly, only 4 per cent of Oman's 50,000-square-kilometre hydrogen potential has been allocated so far. We're serious about scaling but also balanced about risk,' he added. While optimism surrounds the auction, Al Shidhani acknowledged ongoing challenges facing the global hydrogen industry, such as political transitions and policy delays in key markets including Germany and Japan. One critical challenge being addressed by Hydrom is the imbalance between global hydrogen supply and demand. 'We're tackling this through government-to-government agreements with Japan, South Korea, Germany, the Netherlands, Belgium, and Singapore,' he said. 'These aren't just MoUs—we conduct workshops, run joint studies, and have launched the world's first liquid hydrogen corridor with partners in Germany and the Netherlands.' Domestically, Hydrom is also focusing on building a viable local market for hydrogen. 'We're exploring downstream applications and support tools like the double-sided auction model to make green hydrogen affordable for local industries without undermining competitiveness,' he said. 'We're not waiting for perfect conditions—we're pushing ahead with real engagements and infrastructure planning.' Also aiding investor convenience is a streamlined permit system that consolidates approvals across multiple government agencies. 'We had a major breakthrough with the single automatic permit system,' Al Shidhani said. 'Previously, developers needed clearances from 36 entities. That's now down to just nine. Through the newly launched Oman platform, once a project is approved, developers receive access to all requirements, and full land access is granted the next day. This automated system has dramatically reduced administrative bottlenecks.' While underscoring Hydrom's central role in orchestrating Oman's green hydrogen ambitions, Al Shidhani emphasized that the success of the sector depends on collective action. 'Hydrom remains the coordinator, but success hinges on ecosystem partners delivering on their responsibilities,' he said. 'We expect our first hydrogen plant to be operational between 2029 and 2031.'
Observer
19-06-2025
- Business
- Observer
‘LNG from Oman': Unified brand for Oman's LNG
MUSCAT, JUNE 19 With two more LNG projects currently under development and construction, the Sultanate is seeking to leverage this significant expansion of its LNG industry to build a new brand around the global sales of LNG from Oman. Stylised as 'LNG from Oman', this brand will encompass exports from Oman LNG's three-train complex at Qalhat, future production from the under-construction Marsa LNG bunkering project at Sohar Port, and the proposed fourth LNG train project, dubbed 'Sur LNG', which is currently under deliberation. According to Hamed al Naamany, CEO of Oman LNG, the branding initiative aims to capitalise on the strong foundations of trust, reliability, and flexibility that have characterised Oman's LNG exports over the past two decades. 'We're delivering 'LNG from Oman' because that is the brand the global market recognises and trusts,' Al Naamany said. 'This includes Sur LNG, our planned fourth train, and Marsa LNG in Sohar, a dedicated bunkering facility being built in partnership with TotalEnergies and our sister company OQ. Oman's market positioning is not about who operates the plant but the reliability and flexibility of the product from the country,' he added in an interview with The Energy Year (formerly The Oil & Gas Year). Elaborating on this point, Al Naamany described LNG from Oman as a brand offering a 'differentiated value proposition.' He explained: 'We work closely with different types of buyers – whether in Europe, Asia, or among portfolio players – to tailor commercial flexibility to their needs and ours. We are known as one of the most agile producers globally. We listen to our customers while meeting the expectations of our government. That dual responsiveness resulted in the successful signing of long-term agreements in record time.' Majority government-owned Oman LNG will play a pivotal role in this new brand positioning, the CEO noted. To this end, the company plans to build on its recent debottlenecking efforts, which enabled it to produce a record 12 million tonnes of LNG in 2024, surpassing its nameplate capacity of 11.4 million tonnes. This additional capacity, he added, has enhanced the company's ability to respond to spot-market demand and seasonal fluctuations. He further noted that nearly 85% of Oman LNG's volumes are now secured through term contracts ranging from three to ten years, offering a balance of stability and flexibility. Marsa LNG, meanwhile, will serve as a 'differentiator,' said Al Naamany. 'Marsa is the world's first purpose-built LNG bunkering facility. The location is fantastic, and we're all for it. Global shipping is shifting to LNG-fuelled vessels, and Oman sits on a key trade route. The government's decision to develop Marsa sends a powerful message: Oman will participate in every LNG market segment – power, transport, bunkering – as part of its growth and diversification agenda.' Also integral to the new branding is the Sur LNG project – a fourth train with a planned capacity of 3.8 million tonnes per annum, slated for launch by 2029, subject to a Final Investment Decision (FID). 'Sur LNG aims to be ready this year with a full proposal,' said Al Naamany. 'The final decision will rest with the government and the partners. The market clearly wants the product, and with a compelling value proposition, we could see delivery in less than four years from approval.' Feedstock for Oman LNG, Qalhat LNG and the proposed Sur LNG project is expected to come from a variety of sources, Al Naamany noted. 'We've always been flexible. When Khazzan came on line in 2018, we adapted. Our facilities at Oman LNG, Qalhat LNG, and Sur LNG are designed to process various gas compositions. We don't rely on specific fields; we adjust to what the government assigns. Our competitive edge lies in modifying plants cost-effectively while maintaining output.' Another pillar of Oman LNG's competitive edge in the global market is its 'commercial agility', he said, adding that the use of advanced optimisation tools – such as swapping, diverting, and re-trading – has contributed significantly to this strength. 'That's why energy traders and large portfolio players are partnering with us. We now have 14 Sales and Purchase Agreements (SPAs) with companies such as Botas, Shell, BP, TotalEnergies, Jera, Mitsui, Vitol, Mercuria, Kansai Electric Power, PTT, SEFE, OQT, and Sinopec, delivering volumes from 2025 to 2034. And there's more to come,' Al Naamany concluded.
