OQ, the global integrated energy group of the Sultanate of Oman, has announced its plans to develop a pipeline of renewable energy projects with a total capacity exceeding 5 gigawatts (GW) by 2030. These projects will be implemented in multiple phases and will play a crucial role in decarbonizing Oman's oil and gas sector, as well as supporting industrial clusters across the country. The group, which is wholly state-owned and part of the Oman Investment Authority (OIA), shared this information in its 2023 Annual Report.
The first phase of projects, expected to have a renewable energy capacity of approximately 400 MW, is projected to reach a Final Investment Decision (FID) by the end of this year. This marks a significant milestone in OQ's clean energy drive. The responsibility for spearheading this initiative falls on OQ Alternative Energy (OQAE), which has been designated as a 'Renewable Energy National Champion' by the Ministry of Energy and Minerals.
OQAE is fully committed to sustainability and decarbonization. It is leading OQ's efforts to enhance the resilience of its existing hydrocarbon portfolio and achieve sustainable growth through initiatives focused on energy efficiency, clean energy, and low carbon molecules (LCM). The ultimate objective is to build a diversified portfolio with stable returns that extends beyond hydrocarbons.
In 2023, OQ highlighted its achievements in the green hydrogen sector. The company's Alternative Energy unit successfully signed Project Development Agreements (PDAs) with Hydrom, the leading orchestrator in this field. These agreements were specifically for legacy green ammonia export projects like Hyport Duqm, Green Energy Oman (GEO), and SalalaH2. Additionally, OQ secured concession blocks for each of these projects, ensuring their progress.
However, OQ acknowledged the importance of de-risking these projects before moving forward with the Final Investment Decision (FID) stage. The green hydrogen sector, being a part of low carbon molecules, is still in its early stages globally and faces risks related to regulations, policies, technology, and market dynamics. To address these challenges, OQAE actively collaborated with key stakeholders in the ecosystem throughout 2023. This collaborative approach allowed the company to structure solutions and make significant progress in the development of these projects.
Furthermore, OQ is also making strides in other low-carbon initiatives. One notable initiative is the pilot project for a green hydrogen refueling station. In partnership with a consortium of public and private sector organizations, OQ completed a concept study for this refueling station, demonstrating its commitment to advancing sustainable energy solutions.
In 2023, OQ highlighted its achievements in the green hydrogen sector. The company's Alternative Energy unit successfully signed Project Development Agreements (PDAs) with Hydrom, the leading orchestrator in this field. These agreements were specifically for legacy green ammonia export projects like Hyport Duqm, Green Energy Oman (GEO), and SalalaH2. Additionally, OQ secured concession blocks for each of these projects, ensuring their progress.
However, OQ acknowledged the importance of de-risking these projects before moving forward with the Final Investment Decision (FID) stage. The green hydrogen sector, being a part of low carbon molecules, is still in its early stages globally and faces risks related to regulations, policies, technology, and market dynamics. To address these challenges, OQAE actively collaborated with key stakeholders in the ecosystem throughout 2023. This collaborative approach allowed the company to structure solutions and make significant progress in the development of these projects.
Furthermore, OQ is also making strides in other low-carbon initiatives. One notable initiative is the pilot project for a green hydrogen refueling station. In partnership with a consortium of public and private sector organizations, OQ completed a concept study for this refueling station, demonstrating its commitment to advancing sustainable energy solutions.
