$6.7bn Deal to Develop Green Hydrogen Project in Oman
A consortium led by South Korea’s largest steel producer Posco has won a $6.7 billion deal to develop a green hydrogen project in Oman. How can this help Oman become the largest green hydrogen exporter by 2030?
Posco is the development consortium’s largest shareholder with 28 per cent, while Samsung holds 12 per cent equality and is expected to lead on the engineering, procurement and construction of the plant.
A further 24 per cent is owned by two unnamed state-owned Korean power companies, while France’s Engie and Thai state petroleum company PTTEP told a respective 25 per cent and 11 per cent.
Moving to green hydrogen is a huge part of Posco’s strategy to reach net zero by 2050. The company is also considering using hydrogen to decarbonise its power generation, as well as selling it to third parties.
It follows the recent report by the International Energy Agency (IEA) which stated that it expects Oman to be the Middle East’s largest green hydrogen exporter by 2030.
The country is currently allocating around 50,000sq km of land for renewable hydrogen projects in an effort to have at least one million tonnes of annual production capacity by the end of the decade.