Saudi Arabia’s ACWA Power, Oman’s integrated energy group OQ and Air Products signed a joint development agreement to build a green hydrogen-based ammonia production facility in Oman.

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

To be located in Oman’s Salalah free zone, the joint venture project would include the 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. The facility is expected to be equally owned by the three project partners.

Air Products chairman, president and chief executive officer, Seifi Ghasemi, said, “We are delighted and honoured to work with the government of Oman to develop this multibillion-dollar project, which would be similar to 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.”

OQ chairman Mulham Al Jarf said, “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. 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.”

“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. 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,” added ACWA Power chairman Mohammad A. Abunayyan.

An agreement was signed between Air Products, ACWA Power and NEOM in 2020 to build the world’s largest green hydrogen project in NEOM. Meanwhile, last year, Saudi Aramco, Air Products, ACWA Power, and Air Products Qudra signed agreements for $12bn JV in Jazan.