How is Oman’s Role in the Hydrogen Industry Evolving?
ACME Group and Hydrogenious LOHC Technologies to jointly explore hydrogen value chains from Oman to Europe.
ACME Group, one of the world’s leading sustainable and renewable energy companies, and German pioneer in Liquid Organic Hydrogen Carriers (LOHC), Hydrogenious LOHC Technologies, have signed a Memorandum of Understanding (MoU). They will Collaborate on a feasibility study to explore the joint development at large-scale hydrogen supply chains from ACME’s projects in Oman to supply hubs in Europe using the innovative LOHC technology.
Both parties intend to extend the partnership to evaluate the hydrogen value chain from the US to Europe.
Oman benefits from abundant renewable energy resources such as solar and onshore wind while US Inflation Reduction Act offers production incentives leading to competitive hydrogen production cost. The green hydrogen produced by ACME in these projects can be stored in LOHC and transported by tanker to Europe to supply and decarbonise industrial offtakers, energy and mobility.
“Green Hydrogen is emerging as a real opportunity that can transform the global energy systems and meet the decarbonisation goals of industry and governments,” said Ashwani Dudeja, Group President and Director for ACME Group.
“While some will continue to challenge the economic and technical feasibility, we have taken conclusive decisions on our Oman project and partnering with Hydrogenious to develop efficient logistics using LOHC is the next step in delivering cost effective value proposition for our customers,” he added.
Hydrogenious’ LOHC technology is perfectly suited for large-scale hydrogen imports via maritime supply chains, enabling viable and cost-effective import vectors to Europe.
Storage concerns eased through LOHC tech
By safely binding hydrogen to the thermal oil benzyltoluene (LOHC-BT) in a chemical process, the volatile green molecules can be efficiently stored and transported at ambient pressure and temperature using the existing liquid fuel infrastructure.
“As companies, ACME and Hydrogenious are at the forefront of the energy transition and share the common goal of driving global decarbonisation. Our collaboration will contribute to making clean hydrogen from the MENA region and the US available to European off-takers in the mid to long term,” explained Toralf Pohl, Chief Commercial Officer at Hydrogenious LOHC Technologies.
Due to its inherent safety, LOHC-BT is particularly suited for handling hydrogen in ports and urban environments, as it is hardly flammable, very stable and has a competitive volumetric storage density, enabling large-scale
Oman boasts some of the world’s most suitable locations for solar and wind power generation, key ingredients for producing low-cost green hydrogen through electrolysis.
This green hydrogen can then be transported through Oman’s existing 4,000-kilometer gas pipeline network, significantly reducing infrastructure costs compared to starting from scratch.
Furthermore, Oman’s extensive experience in processing and exporting liquefied natural gas (LNG) and ammonia translates directly to efficiently managing green hydrogen and its derivatives.
To execute on its potential, the Omani government aims to produce over 1 million tons of green hydrogen annually by 2030, a figure that is projected to rise to as high as 8.5 million tons by 2050, exceeding even today total hydrogen demand of Europe (IEA analysis, 2023).
Oman location is of huge significance
Oman’s strategic location along key trade routes between Europe and Asia, position it to become the world’s sixth largest and the Middle East’s biggest exporter of hydrogen by 2030, potentially holding a 61% share of the region’s hydrogen exports (IEA analysis).
Furthermore, the Credit Rating Fitch believes Oman is very competitive in green hydrogen production, reflecting its low renewable-energy costs, available export infrastructure through Hydrom and the under-utilised Duqm port, and clear and low taxes.
Oman is an early mover in the green hydrogen revolution and its abundant resources, existing energy infrastructure, and a green-growth focused government position the country for success.
By continuing to attract investment and promote a rapid transition to net zero carbon Oman can consolidate its market position as a green hydrogen powerhouse.
Byline: Raneem Alfahham
