BP to partner with Oman on renewable energy, green H2

BP said it is partnering with the Omani government to progress "a potential multiple gigawatt, world-class scale renewable energy and green hydrogen development" by 2030.

The strategic partnership will entail BP capturing and evaluating solar and wind data from 8,000km² of land, which will be used by the Omani government to approve future renewable energy hubs. As well as supplying the power grid, this renewable energy could also be used to develop green hydrogen production for domestic use and export markets, BP said.

"These projects will build on our gas business [in Oman], and bring wind, solar and green hydrogen together in a distinctive and integrated way supporting Oman's low-carbon energy goals," said BP chief executive Bernard Looney.

More broadly, the agreement will see BP collaborating with Oman on a renewables strategy, regulation and the reskilling of the local workforce.

"Over the past 50 years, we've advanced our hydrocarbon production. Today's agreement signals the next step in our energy journey — unlocking the potential for Oman as a low-carbon energy hub," Oman's energy minister Mohammed al-Rumhy said.

In May last year, Omani state-owned energy firm OQ announced plans to develop the country's first green hydrogen project alongside Hong Kong-based InterContinental Energy and Kuwait's clean energy investment company Enertech. The project in Oman's central al-Wusta governorate will use 25GW of solar and wind power to produce 1.8mn t/yr of green hydrogen and up to 10mn t/yr of green ammonia. It is expected to start production around 2026.

BP joined Oman's national hydrogen alliance last year and established a net zero taskforce to help develop a "roadmap" for the company in Oman. The firm operates Oman's block 61 concession, which contains the Ghazeer tight gas field. Output at Ghazeer has reached a plateau of 500mn ft³/d (5.15bn m³/yr). With an estimated 10.5 trillion ft³ of recoverable gas resources, the block has the capacity to deliver more than 30pc of Oman's total gas demand, according to BP.

By Adal Mirza