BP and Oman will possibly construct several gigawatts of renewable energy and green hydrogen projects in Oman by 2030, boosting the British major’s gas business in the Middle East’s largest non-OPEC oil producer.
According to S&P Global, BP and Oman’s ministry of energy and minerals inked a strategic framework agreement on Jan. 17 that will involve the examination of wind and solar data from 8,000 square kilometers of land – an area more than five times the size of London.
According to BP, the deal will assist Oman in sanctioning future development of renewable energy centers at various places around this region.
BP now manages Oman’s Block 61, which supplies one-third of the country’s gas needs. BP is also a part of Oman’s national hydrogen alliance, which includes 13 stakeholders who will work together on hydrogen refining, transportation, internal usage, and export.
BP has also formed a net-zero task team to assist with the development of a “roadmap” for the British major in Oman.
“This cooperation marks a major transformation of BP’s business in Oman and is consistent with BP’s strategy, which includes quickly expanding our proven renewable producing capacity and taking early positions in hydrogen,” BP said in a statement.
BP intends to integrate its large-scale renewable power pipeline, with a target of 50 GW of renewable development by 2030, with hydrogen projects, as well as leverage its trading and shipping capability to drive costs down.
BP is working on various electrolyzer initiatives focusing on several of its European refineries, as well as a massive blue hydrogen project in Teesside as part of a UK industrial decarbonization cluster.
According to a government official, Oman is in negotiations with investors to establish green ammonia and hydrogen facilities in three free zones.
The country’s Public Authority for Special Economic Zones and Free Zones is now in talks with numerous foreign firms interested in constructing projects to manufacture green hydrogen and ammonia in Duqm, Salalah, and Sohar, Jalal al-Lawati, according to a statement from the authority.
As it aims to augment its energy sector and meet worldwide demand for green ammonia and hydrogen, Oman is stepping up its efforts to generate clean energy products.