Oman gets interest from hydrogen investors for mega-blocks

Oman gets interest from hydrogen investors for mega-blocks

Oman said it had received plenty of interest from international energy companies for two green-hydrogen concessions that will be awarded early next year and which may require around $10bn of investment. The government plans to choose winning bidders by the end of March for the blocks near the port of Duqm. Investors will develop the areas with solar panels and wind turbines to power massive electrolysers and create green hydrogen, a fuel seen as crucial for the global transition to cleaner energy. Oman is one of several Middle Eastern countries, including Saudi Arabia, Egypt and Morocco, seeking to become major exporters of green hydrogen in the next decade. The fuel doesn’t emit any planet-warming gases when burned, though it is still far more expensive to produce than oil and natural gas. More than 40 companies, including TotalEnergies and BP, have purchased request-for-qualification documents for the Omani blocks, an early step before formally bidding. “All the big names are on the list,” Energy Minister Salim Al-Aufi said in an interview in Muscat, the capital. “What makes Oman attractive is the co-existence of solar and wind resources and the vast land that’s available. That makes the cost of producing renewable energy in