25-05-2025
Duqm to anchor OQ's e-fuels push
MUSCAT: OQ Alternative Energy (OQAE), the renewables subsidiary of Oman's integrated energy group OQ, is progressing with plans to establish an e-fuels hub in the Special Economic Zone at Duqm (SEZAD), marking a significant step in Oman's energy transition strategy.
The e-fuels hub, detailed in the OQ Sustainability Report 2024, will pilot the production of synthetic fuels — namely e-Methanol, e-Gasoline, Sustainable Aviation Fuel (e-SAF) and e-NG (synthetic natural gas). These fuels are expected to be produced using green hydrogen combined with biogenic carbon dioxide, offering a scalable pathway to decarbonise the transportation and industrial sectors.
The initiative forms part of OQ's broader mandate to support OmanVision 2040 and the Net-Zero 2050 Strategy by advancing clean energy infrastructure and positioning Duqm as a global green energy hub.
The report highlights Duqm's growing role in the green hydrogen value chain. In addition to the e-fuels pilot, OQ is developing a 10–15 megawatt green hydrogen demonstration plant in SEZAD. The facility is expected to provide hands-on operational experience while supporting future commercial-scale projects.
OQ's energy portfolio in Duqm already includes several flagship ventures, including HYPORT Duqm — a 1.3 GW renewable energy joint venture with DEME and BP — and the Green Energy Oman (GEO) project, a collaboration with Shell, InterContinental Energy and Enertech.
'These pilot projects aim to demonstrate the technical viability of synthetic fuel production while unlocking downstream demand for green hydrogen in shipping, aviation and industrial use,' the report stated.
OQ is also exploring opportunities to position Oman as a global bunkering destination for low-carbon fuels and is developing downstream applications to boost market demand. The company is piloting new vectors such as methanation and carbon utilisation technologies that convert green hydrogen and capture CO₂ into cleaner fuels.
The proposed e-fuels hub is expected to play a strategic role in building Oman's green hydrogen export capabilities, offering direct access to international markets via Duqm Port.
