Hydrogen value chain: Roles for OQ Networks, Asyad Shipping, Majis Industrial, Marafiq and OETC envisioned as well
MUSCAT, OCT 30
The Ministry of Energy and Minerals has outlined the different roles that various Omani state-owned entities will play in the country’s mega-scale hydrogen value chain that was unveiled for the first time last week.
A total of four different roles are envisioned in the development of the country’s future hydrogen economy, the success of which is pivotal to delivering on the Omani government’s commitment to achieving Net Zero carbon emissions by 2050.
Playing the lead role is the Ministry itself which, as Policymaker & Regulator, will chalk out the country’s green hydrogen strategy, as well as formulate the underlying regulations.
A key role has assigned to the newly established state-owned hydrogen-centric company, Hydrogen Oman (Hydrom) – an affiliate of Energy Development Oman (EDO). Hydrom’s remit as ‘Orchestrator’ includes, among other things, tendering and award of the land concessions, development and management of the common infrastructure, coordinating product offtake with investors and markets, liaising between developers and utilities (power, water and gas networks), and working alongside the Public Authority for Special Economic Zones and Free Zones (OPAZ).
In addition to serving as the industry’s ‘Orchestrator’, Hydrom will also play a role in the development and management of the transport and storage infrastructure linked to the green hydrogen industry.
Supplementary roles are also envisioned for OQ Networks (which owns and operates the country’s gas network), Majis Industrial Services (MIS) – the state-owned integrated water utility, Marafiq Oman – a centralised utilities provider, and Oman Electricity Transmission Company (OETC) – part of Nama Group.
The role of the investor / developer is broad-based. In addition to financing the project, the developer will also invest in the upstream renewables-based power generation component, the midstream electrolyser facilities, and downstream production of hydrogen or its derivatives. OQ Alternative Energy, a fully owned arm of OQ Group, is expected to represent the government’s stake in all hydrogen projects developed in Oman.
Finally, Asyad Shipping — part of state-owned Asyad Group — will be involved in the maritime transportation of green ammonia and other hydrogen-based derivatives that will emerge from this nascent industry.
Cumulative investments in Oman’s green hydrogen economy are estimated to total around RO 54 billion by 2050, according to the Ministry. This will include investments necessary for the massive quantities of key infrastructure components and hardware, notably solar panels, wind turbines, electrolysers, derivative synthesis systems, storage, water, transport, water desalination, and other equipment.
