Oman to develop green hydrogen project

: Fertilizers, Hydrogen
21/05/18

Oman will develop its first green hydrogen project using solar and wind power, state-owned energy company OQ said.

The 25,000MW project will be developed by a consortium of OQ, Hong Kong-based green hydrogen firm InterContinental Energy and Kuwait's clean energy investment firm Enertech. It did not give details on a timeline for the project, which has been in a planning phase for three years with wind and solar studies conducted in Oman's central Al-Wusta governorate.

The power generated will be used for water desalination and electrolysis at a coastal facility that will produce 1.8mn t/yr of green hydrogen and up to 10mn t/yr of green ammonia. The hydrogen could be used domestically, exported directly or converted into green ammonia for export, the consortium said.

"Existing energy infrastructure in Oman provides additional future options to develop synthetic fuels for the aviation sector, which will be critical for decarbonization," it said.

InterContinental Energy works with a consortium on a similar project in Australia, using 15,000MW of wind and solar power to produce hydrogen and ammonia for export to Asia-Pacific. It plans to make a final investment decision on that by 2025, and said that the falling cost of wind and solar means it possible for hydrogen and green ammonia export projects to be developed at scale.

These lower costs and the growing importance of reducing emissions has pushed the Mideast Gulf's traditionally oil-and-gas focused economies to consider options for hydrogen and ammonia production. Saudi Arabia shipped its first blue ammonia cargo last September as a trial for use in power plants with no CO2 emissions, and the UAE is building a hydrogen business case and aims to be a major global supplier.

By Adal Mirza

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

24/12/20

Viewpoint: EU at crossroad on H2 rules, competitiveness

London, 20 December (Argus) — The new team of EU commissioners will enter 2025 bent on reversing the bloc's economic stagnation and the flight of industry to cheaper parts of the globe, which have been salient themes in 2024. Hydrogen industry participants will keenly monitor Brussels' choice of interventions, which promise to restart the sector's engine, but must avoid undermining faith in rules. Pledges from re-elected president Ursula von der Leyen to tackle overcomplexity and "structurally high energy prices" both concern hydrogen, and her notion of a pivotal moment for the EU rings true for the hydrogen market because of its connection to industry and because stubborn costs and underwhelming growth in 2024 undermined confidence. Frequent vows for urgency, simplicity and speed have worn thin, and the European Commission's latest reformist push could flatter to deceive. But multiple warning shots fired last year — including from the European Court of Auditors and respected former Italian prime minister and president of the European Central Bank Mario Draghi — pile on pressure to tweak hydrogen policy in 2025. The auditors' report urged a "reality check" and strategy review, cautioning Europe could spectacularly miss its targets, while Draghi stressed cost-efficient decarbonisation to protect European industry — a view shared by member states and energy-intensive companies. Von der Leyen's "Clean Industrial Deal", promised inside 100 days of her new term, could set the tone. But some, like chemicals firm BASF, have already voted with their feet by relocating jobs outside Europe. For hydrogen, the commission's easiest reform might be setting realistic 2030 targets to replace the 20mn t/yr renewable hydrogen supply, since industry deems it impossible and the commission's own notes predict a 3mn-6mn t/yr market. But this is hardly the most pressing change and would not help morale. A more radical move would be to somehow relax the renewable hydrogen definition, which many market participants consider overly burdensome. The bloc's biggest economy, Germany, put its weight behind changes in September, saying "reality has now shown these requirements were still too high". Berlin's volte-face could hand Brussels an easier climb down. But reopening that can of worms would dent the investment climate and distract from the low carbon hydrogen rules coming in 2025. All this makes radical change risky, but postponing certain aspects might be slightly more palatable. Brussels must also decide to maintain or soften its 2030 mandates for renewable hydrogen. Several countries and companies want openness to hydrogen from other low-carbon production pathways, which are backed in the US, Canada, the UK and others. Some have more fundamentally urged freedom to find the cheapest route towards cutting CO2. The first interpretation of the industry mandates from the Netherlands highlights the difficulty balancing mandates with fair competition versus competitors inside and outside the bloc. But loosening rules would frustrate first movers that took pains to comply. Moreover, some firms champion the EU's forte of creating demand via rules over subsidies that cannot last forever nor compete with the US. "Don't blink, because people will invest money against 2030 mandates," Spanish integrated Moeve's director and chief executive Maarten Wetselaar urged Brussels recently. EU policymakers accept they must cut hydrogen costs and are weighing options with member states. "The market has changed, and we are probably more technology neutral and more colour friendly than we used to be... this is realism," commission deputy director general for energy Mechthild Worsdorfer said in November. But Worsdorfer opposed "changing anything right now" after the "intense" debates to settle definitions. Commission and members will "find the right balance", Worsdorfer said, but hydrogen participants need clarity sooner rather than later. By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US Congress passes waterways bill

24/12/19

US Congress passes waterways bill

Houston, 19 December (Argus) — The US Senate has passed a bipartisan waterways infrastructure bill, providing a framework for further investment in the country's waterways system. The waterways bill, also known as the Water Resources and Development Act (WRDA), was approved by the Senate in a 97-1 vote on 18 December after clearing the US House of Representatives on 10 December. The WRDA's next stop is the desk of President Joe Biden, who is expected to sign the bill. The WRDA has been passed every two years, authorizing the US Army Corps of Engineers (Corps) to undertake waterways infrastructure and navigation projects. Funding for individual projects must still be approved by Congress. Several agriculture-based groups voiced their support for the bill, saying it will improve transit for agricultural products on US waterways. The bill also shifts the funding of waterways projects to 75pc from the federal government and 25pc from the Inland Waterways Trust Fund instead of the previous 65-35pc split. "Increasing the general fund portion of the cost-share structure will promote much needed investment for inland navigation projects, as well as provide confidence to the industry that much needed maintenance and modernization of our inland waterway system will happen," Fertilizer Institute president Corey Rosenbusch said. The bill includes a provision to assist with the damaged Wilson Lock along the Tennessee River in Alabama. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

USDA awards more funding to increase fertilizer output

24/12/19

USDA awards more funding to increase fertilizer output

Houston, 19 December (Argus) — The US Department of Agriculture (USDA) awarded over $100mn this week across nine states to increase domestic fertilizer production as the effort to make farmer affordability more favorable continues. About $116mn will be invested through the USDA's Fertilizer Production Expansion Program (FPEP) to help eight facilities expand output in California, Colorado, Georgia, Indiana, Iowa, Kansas, Michigan, Oklahoma and Wisconsin. Recipients include the Michigan Potash Company, where the construction of a new facility should yield 400,000 metric tonnes (t) annually of high-grade potash, and Farmers Cooperative Association, where funding will expand its existing dry fertilizer facility with additional storage and processing capacity. "When we invest in domestic supply chains, we drive down input costs and increase options for farmers," USDA secretary Tom Vilsack said. Through the FPEP, the USDA has invested $517mn in 76 fertilizer production facilities across 34 states and Puerto Rico. President Joe Biden's administration committed up to $900mn in the program through the Commodity Credit Corporation, which is expected to support long-term investments by strengthening supply chains. Higher US fertilizer prices throughout this year deterred fall demand as lower crop prices forced farmers to sell more of a crop to afford nutrients. The last USDA FPEP funding announcement was in August , when $35mn was granted to boost seven domestic production projects. By Taylor Zavala Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Strikes at Australian commodity ports to continue

24/12/19

Strikes at Australian commodity ports to continue

Sydney, 19 December (Argus) — Workers at major commodity ports across Australia will strike next week, in response to stalling negotiations with port operators. Queensland In northern Queensland, unions representing almost 200 workers have notified the Gladstone Ports (GPC) that they plan to launch work stoppages at the LNG and coal hub next week, a source told Argus. The strike actions follow an earlier day-long work stoppage involving over 100 workers at the port that began earlier this week. The dispute between GPC and its workers is centred around wage and rostering proposals. GPC and unions representing its workers have not scheduled any further bargaining meetings, multiple sources have told Argus . Gladstone's ship queue has exceeded 30 ships multiple times since work stoppages began on 17 December. This compared with a queue of 48 ships in December 2023, after Cyclone Jasper forced three other north Queensland ports to turn vessels away for four days. To the south of Gladstone, 100 workers at the Qube-operated Port of Brisbane will also stop working between 23-27 December, according to maritime logistics firm GAC. The stoppage announcement follows a day-long strike at multiple Qube ports , which began on 16 December. Before the strike began, a Qube representative warned that strikes at its ports would "inevitably [cause] disruption to supply chains for key commodities like fertiliser, grain, and steel." The Port of Brisbane is a major oil and meat port. New South Wales Along Australia's eastern coast, workers at Qube's major coal, grain, and fertiliser port in Port Kembla are planning to strike for a longer period of time than their colleagues in other parts of the country. GAC has reported that workers will launch 13 rolling work stoppages at the port between 20 December and 3 January. There are 141 members of the Construction, Forestry and Maritime Employees Union (CFMEU) participated in a strike authorisation vote at the site in early September, and have been engaged in industrial actions since then. Port Kembla also faced a day-long work stoppage earlier this week. Northern Territory Union members in Darwin are planning to not work for 1½ day beginning on 23 December. Like the Port of Brisbane, Darwin tends to handle livestock and oil products. But only 37 workers were eligible to participate in a successful mid-September union ballot authorising work stoppages at the port. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US Army Corps proposes new Illinois River lock

24/12/18

US Army Corps proposes new Illinois River lock

Houston, 18 December (Argus) — The US Army Corps of Engineers (Corps) has proposed a new lock to replace the LaGrange Lock and Dam (L&D) near Beardstown, Illinois, as part of the Navigation and Ecosystem Sustainability Program (NESP). The project would be the first new lock for NESP, a program that invests in infrastructure along the Mississippi and Illinois rivers. The new 1,200ft proposed LaGrange Lock would allow for passage of more barges in a single lockage, instead of having to split the tow in two with the current 600ft LaGrange Lock. At the moment, most tows trying to pass through the LaGrange lock experience multiple hour delays. The new LaGrange lock would have an estimated cost of $20mn, with a construction timeline of five years. The project area would be located on the west bank of the Illinois River near the 85-year old LaGrange L&D, encompassing 425 acres. Real estate acquisition, design plans and contractors are already in place, said the Corps. The current LaGrange lock would remain in operation and become an auxiliary chamber. The Corps opened the upcoming project to public comments on 11 December and will close on 3 January. NESP has four other projects along the Mississippi River. Another full lock construction project is anticipated for Lock and Dam 25. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more