DEME and OQ have announced their partnership with bp for the HYPORT Duqm project in Oman, with bp acquiring 49 per cent stake and serving as the operator and equity partner. DEME and OQ will each hold 25.5 per cent. The project is currently in the design phase and is anticipated to begin commercial operations by 2031.
Furthermore, HYPORT Duqm is a large-scale green hydrogen project in Oman which is being developed over 150 km² in the Special Economic Zone at Duqm. Under the new agreement, bp will join the project with the transaction expected to be finalised in Q3 2024.
The project will generate green hydrogen and ammonia using wind and solar energy, starting with a capacity of about 1.3 GW under phase 1. The capacity will potentially increase to over 2.7 GW under phase 2. The export of these green products to European and Asian markets, supporting downstream operations, will be conducted at the Port of Duqm.
In June 2024, DEME inked a Cooperation Agreement with the Egyptian Government to establish an industrial-scale green hydrogen production facility in Egypt’s western desert.
REGlobal’s Views: Oman is slowly emerging as a major investment hotspot for large green hydrogen projects with many massive projects in the pipeline. The country has a rich untapped renewable energy potential and is expected to become a major exporter of green hydrogen in the coming years. It has a target to reach a hydrogen production capacity of 1 million tonnes by 2030, and in order to bring down costs, common infrastructure is being developed in the country to supply water to developers and transport the produced green hydrogen to ports.
