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ACWA Power, OQ, and Air Products ink deal for world-scale green hydrogen-based ammonia production facility in Oman

ACWA Power, OQ, Oman’s leading integrated energy group, and Air Products signed a joint development agreement (JDA) toward a multibillion-dollar investment in a world-scale green hydrogen-based ammonia production facility powered by renewable energy in Oman.

The JDA signing follows a memorandum of understanding signed in December 2021.

Envisioned for Oman’s Salalah Free Zone, the joint venture project would be based on proven, world-class technology and include: the innovative integration of renewable power from solar, wind and storage; production of hydrogen by electrolysis; production of nitrogen by air separation; and production of green ammonia.

It is anticipated that the green hydrogen-based ammonia production facility would be equally owned by the project partners.

Air Products Chairman, President, and Chief Executive Officer Seifi Ghasemi, said, “We are delighted and honored to work with the government of Oman to develop this multibillion-dollar project, which would be like the world-scale green hydrogen project we are implementing with our partners in NEOM in Saudi Arabia. We look forward to applying our know-how, technology, and more than 60 years of experience in hydrogen to help move this project forward and take another significant step in decarbonising the world.”

Commenting on this venture, OQ Chairman Mulham Al Jarf said, “We are proud of our partnership with ACWA Power and Air Products. This project positions OQ as an energy transition enabler, while playing on our strengths and leveraging our expertise in the downstream chemicals business, particularly in Salalah where we have extensive operations, and our demonstrated ability to off-take products and competitively deliver them to global customers. The project fits well with the Sultanates’ renewable energy strategy and fosters investments in alternative energy resources, both of which contribute to Oman Vision 2040.”

ACWA Power Chairman Mohammad A. Abunayyan said, “As a company that is driving the transition towards a greener future through utilising cutting-edge technologies and innovative solutions, we are extremely proud to support the Government of Oman’s ambition to pursue decarbonization and advance the development of green hydrogen, considered to be the fuel of the future. Our investment in developing and building water desalination and power production plants in Oman started in 2011, and we continue to expand our robust portfolio in the Sultanate.

“Utilising our global expertise, we were successfully able to launch Oman’s first utility-scale renewable energy project. Oman continues to be a key market for ACWA Power for its potential, resources and location, making it a tremendous enabler for the production of green hydrogen. The signing of the joint development agreement is another milestone and signifies the continued trust being placed in ACWA Power by all our partners in bringing this ambitious project to life.”

“We aim to leverage our proven track record, knowledge and expertise in developing sustainable global scale green projects including NEOM – a pioneering at-scale green hydrogen and ammonia facility, and we are confident of leading green hydrogen development globally through partnership and collaboration,” Abunayyan added.

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