Oman's Public Authority for Special Economic Zones and Free Zones (OPAZ) on Wednesday signed the land usufruct agreement with Green Hydrogen and Chemicals Company (GHC) - a joint venture between the UK-based ACME Company and Norway-based Scatec ASA - to develop the phase one of the green hydrogen and ammonia project in the Special Economic Zone at Duqm.
The agreement was signed by H E Dr Ali bin Masoud al Sunaidy, chairman of OPAZ and Manoj Upadhyay, chairman and Founder of ACME Group, according to a press statement.
As per the agreement, the Green Hydrogen and Chemicals Company will begin developing the first phase of the project over 12 sqkm of land to produce 100,000 metric tonnes of green ammonia per annum in the Special Economic Zone at Duqm. Once fully developed, the project is expected to produce up to 1.2mn tonnes of green ammonia annually.
Eng Yahya bin Khamis al Zadjali, in-charge of managing operations of the Special Economic Zone at Duqm, said, 'The Special Economic Zone at Duqm will play a major role in the future of energy transition in Oman. Today's project will allow Duqm to become a hub for green hydrogen projects. Attracting such outstanding projects and investments to Duqm will thrive the promising clean energy sector in Oman.'
'Signing this agreement will serve as a testament for the sultanate being an ideal hub for green hydrogen and green ammonia projects, considering the high solar irradiation and wind resources all year around. Accordingly, it will attract further investments and projects to Oman and Duqm, in particular,' he added.
Rajat Seksaria, CEO of ACME Group, said, 'The signing of the usufruct agreement is an important milestone in setting up this green hydrogen and green ammonia project. We will start the construction activities soon and build one of the most advanced technologies and create a state-of-the-art facility. This project helps opening a new chapter of business cooperation between our countries - India, the UK and Oman. We extend our gratitude to the Sultanate of Oman for helping us contribute to the journey of innovation and transition to clean energy sources. We are also delighted to have Scatec as our joint venture partner in this exciting venture.'
Terje Pilskog, CEO of Scatec, said, 'The signing of this land lease agreement is another key step in our green ammonia project, and we would like to thank the government of Oman and our joint venture partner ACME. Green hydrogen and green ammonia are vital if we are to get on track to limit global warming to only 1.5 degrees Celsius. We want to produce a strong supply of green hydrogen to help create energy security and a pathway to net zero.'
Gursharan Jassal, country head - Oman, Green Hydrogen and Chemicals Company stated, 'ACME and Scatec, as joint venture partners, are committed to work closely with OPAZ and the Ministry of Energy and Minerals in our endeavour to bring onstream this green ammonia project in a time-bound manner. This project will further contribute to Oman's green energy vision and position Oman as the global export hub for green fuel.'
This usufruct agreement proceeded signing the land reservation agreement that was signed between OPAZ and ACME Group in August 2021, which included conducting field studies of the project as well as installing weather monitoring station to measure the solar and wind potential in Duqm.