Shell has taken a 35pc stake in Oman’s flagship Green Energy Oman hydrogen project, thereby becoming its main developer and operator. The major joins a development consortium comprised of Omani national energy company OQ, low-carbon fuel developer Intercontinental Energy and Kuwaiti state clean energy fund Enertech.

Green Energy Oman, which could produce more than 1.8mn t/yr of green hydrogen from up to 25GW of wind and solar capacity, contracted engineering services firm Worley in April last year to conduct a concept feasibility assessment. In the past year, the project has also awarded contracts for an energy yield assessment to consultancy DNV and an environment and social impact assessment to environmental consultancy HMR.

1.8mn t/yr – Green Energy Oman’s planned production capacity

Shell has also signed a letter of intent with Oman’s Ministry of Energy and Minerals to explore opportunities for production of liquefied synthetic gas in the country using green hydrogen and captured CO₂ as feedstock. And the major has also signed an offtake agreement for 0.8mn t/yr from Oman LNG for ten years starting from 2025.

“We are pleased to sign these important agreements that will strengthen our partnership with the Sultanate of Oman. This will be Shell’s first long-term LNG offtake from Oman, and the agreement supports continued production from Oman LNG into the 2030s,” says Shell vice-president and country chair for Oman Walid Hadi.

“With our entry to the Green Energy Oman consortium, we are taking a further step to advance lower- and zero-emissions energy projects in Oman. The project remains in its early phase, but this is a sign of the potential we see for Oman through the energy transition. We also look forward to working together with the Ministry of Energy and Minerals to explore the sustainable development of the first integrated liquefied synthetic gas value chain.”

Timeline

While the major has not disclosed any updates to Green Energy Oman’s development timeline, the consortium has previously indicated the project is likely to take FID by 2026, with construction starting in 2028 and operation at full capacity by 2038.

Oman opened its first round of auctions for green hydrogen project sites in November last year, with site awards expected this year, as part of a bid to invite international investment into the fuel’s development.

BP announced plans at the beginning of 2022 to collect and analyse wind and solar data across 8,000km² of land to inform possible locations for renewable energy and green hydrogen hub development in the country. And in May, Saudi government-affiliated Acwa Power and US industrial gases company Air Products signed a joint development agreement with OQ to establish a green hydrogen and ammonia production facility at Salalah, the sultanate’s southern industrial hub.

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Author: Polly Martin