Jul 21

NEOM Partners Eye Green Ammonia Project in Oman

Editorial Staff
May 27, 2022
Image: Biel Morro via Unsplash.

Saudi-based ACWA Power, U.S.-based supplier of industrial gases Air Products, and OQ, a leading Oman energy group, plan investment into green hydrogen-based ammonia in Oman.

Development of the complex would require multi billion dollars in investment, according to a press release.

The project, envisioned for Oman’s Salalah Free Zone, would be based on proven technology and include: integrating renewable power from solar, wind and storage, the production of hydrogen by electrolysis, the production of nitrogen by air separation, and the production of green ammonia.

“We are delighted and honored to work with the government of Oman to develop this multibillion-dollar project, which would be similar to the world-scale green hydrogen project we are implementing with our partners in NEOM in the Kingdom of Saudi Arabia,” according to Air Products Chairman, President and Chief Executive Officer Seifi Ghasemi.

Meanwhile, ACWA and Air Products seeking to take advantage of Saudi Arabia’s vast sunlight exposure for cost advantages in developing clean hydrogen as part of the nation’s massive futuristic NEOM project. Traditional oil producing nations, like Saudi and Oman, have joined the push to build molecules as storage for clean energy, especially where it fits into existing infrastructure. 

“This project positions OQ as an energy transition enabler, while playing on our strengths and leveraging our expertise in the downstream chemicals business, particularly in Salalah where we have extensive operations, and our demonstrated ability to off-take products and competitively deliver them to global customers,” according to OQ Chairman Mulham Al Jarf. “The project fits well with the Sultanate’s renewable energy strategy and fosters investments in alternative energy resources, both of which contribute to Oman Vision 2040”

ACWA Power started investment in developing and building water desalination and power production plants in Oman in 2011. It also has launched Oman’s first utility-scale renewable energy project. 

“We aim to leverage our proven track record, knowledge and expertise in developing sustainable global scale green projects including NEOM – a pioneering at-scale green hydrogen and ammonia facility, and we are confident of leading green hydrogen development globally through partnership and collaboration,” ACWA Power Chairman Mohammad A. Abunayyan said in the statement.

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