Oman’s strategic green hydrogen project HYPORT® Duqm has signed a cooperation agreement with energy giant Uniper. Under the cooperation, Uniper will be joining the project team to provide engineering services and negotiate an exclusive offtake agreement of green ammonia.
With Uniper, HYPORT® Duqm’s shareholders DEME Concessions and OQ Alternative Energy have onboarded a globally recognised and reputable partner, which will support HYPORT® Duqm in demonstrating a strong business case for the offtake, and in turn, enable them to secure optimal financing for the project.
This agreement marks another important milestone for HYPORT® Duqm, after having secured its 150 km² renewable generation site in the Special Economic Zone at Duqm, Oman earlier this year. The site is being prepared for the deployment of a series of meteorological masts to confirm Duqm’s excellent solar and wind conditions which are available throughout the year and that form the basis of a successful green hydrogen to green ammonia project.
In the first phase the HYPORT® Duqm project will develop a 250 to 500 MW green hydrogen facility in the Special Economic Zone at Duqm. The facility is planned to come into operation in 2026 and will respond to the global demand for green hydrogen and its derivatives. HYPORT® Duqm Phase 1 will establish a complete power-to-product value chain at utility scale, combining first-of-a-kind technology integration with economies of scale, producing competitive green hydrogen and green ammonia.
Complete green hydrogen value chain
Future expansions are foreseen in subsequent phases, whereby a further scaling up of the value chain will transform the Special Economic Zone into a Green Hydrogen hub in Oman and the wider region. HYPORT® Duqm showcases the development of a complete green hydrogen value chain, from the installation of up to 1.3 GWp of renewable power generation capacity from solar and wind (Phase 1), via the electrolysis-based hydrogen production to the synthesis of green ammonia. HYPORT® Duqm will connect to Port of Duqm’s brand-new export terminal, storage infrastructure and liquid jetties and will use Port of Duqm as its gateway to deliver competitive decarbonised molecules to users worldwide.
Luc Vandenbulcke, CEO DEME Group, underlines: “DEME Group has always been at the forefront of sustainable solutions on a global scale. The United Nations’ Sustainable Development Goals are the compass to our present and future activities. With HYPORT® Duqm, DEME is proud of taking the initiative in the global energy transition whereby green hydrogen has been identified as one of the major energy vectors. This project will not only contribute to the challenging European ambitions to reduce CO2 and GHG emissions (as expressed in the Green Deal and Fit for 55 objectives), but will also strengthen Oman and the Sultanate’s visionary future.”
Dr. Salim Al Huthaili, CEO OQ Alternative Energy, states:“The cooperation agreement with Uniper marks a major milestone in the development of the HYPORT® Duqm project. This brings us a step closer to delivering a world scale green Hydrogen facility in the Special Economic Zone at Duqm and showcases the true potential of Oman’s renewable capabilities as well as the critical role that the country can play as a net energy exporter. This agreement will pave the way to further cooperation between OQ Alternative Energy, DEME Concessions and Uniper moving us to the engineering phase of the project. Uniper’s expertise coupled with that of DEME Concessions and OQ Alternative Energy will ensure that HYPORT Duqm is provided with the necessary talent and tools to take us through the engineering phase.”
Niek den Hollander, Uniper CCO, says: “We need to get hydrogen out of the laboratory and start using it in large-scale applications and marketable industrial solutions — we should turn it into a market and exploit its wide variety of uses. One way of achieving this is to import green ammonia and convert it into hydrogen, which is something we are looking at for Wilhelmshaven on Germany's North Sea coast. Germany will be heavily dependent on imports if we want to use hydrogen to help us achieve our climate goals.”
John Roper, Uniper CEO Middle East, adds: “The partnership with OQ and DEME in the HYPORT® Duqm project supports Uniper’s global hydrogen strategy. Engagements like this one in the Middle East offer Uniper the opportunity to enter into green hydrogen projects that can potentially take advantage of some of the world’s lowest LCOEs, thereby delivering cost competitive hydrogen or its derivatives, such as green ammonia, to Germany and Europe. With Uniper as the offtake partner for green ammonia, the partnership will benefit from the additional value added through Uniper’s global commodity trading network.”
About Green Hydrogen in Oman
Green hydrogen production is a natural fit to attain the economic objectives set out in Oman’s 2040 Vision. The Oman 2040 Vision sets out a goal of more than 90% non-oil share in GDP by 2040 and a top 20 ranking in the global innovation index. Not only does green hydrogen contribute to diversifying economic activity beyond oil-related sectors, it also majorly boosts the Sultanate’s environmental and innovative performance profile while building on existing supply chains and infrastructure. The novelty of using hydrogen and its further derivatives such as ammonia as a carrier of green energy, creates the potential for Oman to become a world player in a future commodity market by moving fast and anchoring a robust market presence.
About DEME Concessions
DEME Concessions oversees the DEME Group’s broad-ranging and diverse concessions in the fields of renewables, marine infrastructure and ports, dredging, green hydrogen and special projects. DEME Group is a world leader in the specialised fields of dredging, solutions for the offshore energy industry, infra marine and environmental works. The company can build on more than 140 years of know-how and is a front runner in innovation and new technologies. DEME’s vision is to work towards a sustainable future by offering solutions for global challenges: a rising sea level, a growing population, reduction of CO2 emissions, polluted rivers and soils and the scarcity of natural resources. DEME can rely on 5,200 highly skilled professionals and a modern fleet of over 100 vessels.www.deme-group.com
About OQ and OQ Alternative Energy
OQ is a global integrated energy company with roots in Oman. With operations across 17 countries, we cover the entire value chain from exploration and production to marketing and distribution of end-user products. Our fuels and chemicals are sold in over 60 countries worldwide, making us a pioneer in the energy sector. OQ’s Alternative Energy business unit is the cornerstone of OQ’s position as a leading sustainable integrated energy company and a new avenue for sustained, long-term growth. We see OQ Alternative Energy as fundamental to realising our vision of building a locally and globally integrated energy company. OQ’s Alternative Energy will have a broad scope across the full alternative energy landscape and is predicated on three pillars: Green Molecules, Energy Assets, as well as Energy Efficiency and Optimisation.
Uniper is an international energy company with around 12,000 employees in more than 40 countries. The company plans to make its power generation CO2-neutral in Europe by 2035. With about 35 GW of installed generation capacity, Uniper is among the largest global power generators. Its main activities include power generation in Europe and Russia as well as global energy trading, including a diversified gas portfolio that makes Uniper one of Europe’s leading gas companies. As a pioneer in the field of hydrogen, Uniper has set itself the target of operating worldwide along the entire value chain in the future and implementing projects that will make hydrogen the mainstay of the future energy supply. Uniper is headquartered in Düsseldorf and currently the third-largest listed German utility. Together with its main shareholder Fortum, Uniper is also the third-largest producer of CO2-free energy in Europe. Uniper Global Commodities has been present in the Middle East in Dubai, UAE, since 2007 and has successfully grown its business in the areas of both LNG and VLSFO.
Vicky Cosemans, Head of Communications DEME Group
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Leif Erichsen, SVP External Communication & Sustainability Uniper
email@example.com+49-2 11-45 79-35 70 or +49-1 71-5 63 92 42
Sultan Al Rumhi, Team Lead – External Communication, OQ