MUSCAT: Amnah, the multinational consortium that won Oman’s first land block under the international auction system for green hydrogen development, says it is earmarking its renewable hydrogen output from its multibillion dollar investment in Duqm for the production of green steel in the Sultanate of Oman.
This strategic commitment towards the localized utilisation of green hydrogen was affirmed by a key project executive at the recent Green Hydrogen Summit Oman (GHSO) held in Muscat.
Mark Geilenkirchen, Project CEO, said the Amnah venture’s green hydrogen output, instead of being converted into a derivative for export, will be utilized to support the production of either green steel or intermediate low-carbon commodities, such as Hot Briquetted Iron (HBI) and Direct Reduced (DR) iron.
“Instead of making a hydrogen derivative like ammonia and exporting it, we aim to use the green hydrogen in Oman itself, because we do believe that’s the future for this country because it will have a much higher In-Country Volume (ICV),” he stated.
In June, the Amnah Consortium was named the winner of the first land block (Z1-01) offered by Hydrom, the orchestrator and master planner of Oman’s green hydrogen industry, in the maiden round of an international auction process. The 320 sq km block is located in Duqm, with downstream elements to be established at the Port of Duqm.
Amnah comprises Copenhagen Infrastructure Partners (CIP), a Danish-based global leader in renewable energy investments; Blue Power Partners (BPP), specialists in solar and wind projects; and Al Khadra – part of Oman’s Hind Bahwan Group.
Significantly, the consortium’s pledge to commit its green hydrogen output for industrial decarbonisation represents a major boost for Oman’s ambitions to position Duqm as a hub for investment in, among other sectors, hard-to-abate industries that can utilize renewable hydrogen, once available in abundance, starting from 2030.
A number of international mining and steelmaking conglomerates, notably Vale, Mitsui & Co, Kobe Steel and Vulcan Green Steel (part of Jindal Power & Steel) are progressing plans to develop low-carbon steel and green metallic ventures in Duqm.
Amnah says its decision to pivot towards the green steel sector represents a “pivotal and strategic response to the challenges” currently encountered in the green ammonia and hydrogen industries.
“This transition to green steel is not only commercially viable but also aligns with evolving regulatory landscapes, notably within the European Union’s Carbon Border Adjustment Mechanism (CBAM) regulations,” the consortium said in an overview on its project featured in the latest edition of Energy Oman.
“The marginal cost increase associated with green steel becomes not only acceptable to consumers but, in some cases, a desirable attribute. For example, the construction of electric vehicles and wind turbines, which symbolize sustainability, inherently demands the use of green materials like steel and glass fiber,” it added.
Amnah expects to invest around $6 – 7 billion in a major scheme targeting an output of 210,000 tonnes of green hydrogen in the first phase of its development.
Source: Oman Daily Observer
Date: 26 Dec 2023
