Engie and Posco led consortium to develop green ammonia project in Oman

Commercial operations are expected to begin in early 2030

Engie and steel producer Posco have announced they will be spearheading a consortium to develop a 1.2mtp green ammonia project on a greenfield site located in Duqm, Oman. Other key partners in the consortium include Samsung Engineering, Korea East-West Power Co (EWP), Korea Southern Power Co (Kospo), and FutureTech Energy Ventures Company Ltd (a subsidiary of PTTEP).

The Engie and Posco led-consortium has been named the winner of land block (Z1-02) offered by Hydrom, the orchestrator and master planner of Oman’s green hydrogen industry. The land block will include a total renewable energy capacity of approximately 5GW, which comprises wind and solar power, in addition to battery energy storage (BESS) and a hydrogen plant that will produce 200 kilotons per annum (ktpa) of green hydrogen.

The hydrogen will then be transported by a pipeline to the Special Economic Zone at Duqm, where it will be converted into approximately 1.2m tons per annum (mtpa) of green ammonia for export. The commercial operation date (COD) is expected to be early 2030.

“This venture marks a significant leap forward in the worldwide dedication to expediting the transition to low-carbon energy. With a presence in Oman for more than a quarter-century, we reaffirm our unwavering commitment to supporting the energy transition in the country and the region. By joining forces with our consortium partners, we aim to unlock Oman’s extraordinary renewable energy potential while capitalising on their expertise and capabilities,” stated Frederic Claux, Managing Director, Flexible Generation & Retail, AMEA and Country Manager GCC at Engie.

He added, “Ultimately, this collaboration propels Engie toward its global ambitions of attaining a hydrogen capacity of 4GW by 2030.”

In March 2022, Posco and Engie signed a memorandum of understanding (MoU) to explore joint development opportunities for green hydrogen production and related infrastructure in the Middle East, Australia, and Latin America. This venture symbolises a continuation of their combined efforts and movement in Engie’s quest for Net Zero carbon by 2045 and Posco’s ambition for a green hydrogen-based steel business by 2050.


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