MUSCAT: A Memorandum of Understanding (MoU) signed recently by Japanese heavy engineering manufacturer IHI Corporation with Indian green energy developer ACME Group could potentially see the former participating in a green ammonia project backed by the latter and currently under development in the Sultanate of Oman.
Green Hydrogen and Chemicals Company (GHC), a joint venture between the UK unit of ACME Group and Norway-based Scatec ASA, a leading renewable energy solutions provider, is presently setting up the first phase of a green ammonia venture at the Special Economic Zone in Duqm.
Phase 1, powered by around 500 MW or renewables, targets the production of 100,000 metric tonnes per annum of green ammonia. In the second phase, green ammonia output is anticipated to grow 12-fold to around 1.2 million metric tonnes annually. In a statement, Tokyo-headquartered IHI Corporation said it will “study and investigate the feasibility of producing and utilizing green ammonia derived from renewable energy” as part of the MoU.
“In this MoU, IHI will consider participation in green ammonia production projects, led by ACME, based in Oman, India, the USA and Egypt, as well as the use of ammonia for decarbonized power generation for in Asian islands and other regions,” IHI Corporation stated.
The 170-year-old Japanese company, which began operations as a shipbuilder, has since expanded its heavy engineering portfolio to include the manufacture of aircraft engines, turbochargers for automobiles, industrial machines, power station boilers and other facilities, suspension bridges and other transport-related machinery.
Significantly, the potential for cooperation between the Sultanate of Oman and Japan, stemming from this latest MoU, will build on a broader pledge by the two countries to cooperate across the green energy value chain.
Last December, Oman’s Ministry of Energy and Minerals signed a MoU with the Japanese Ministry of Economy, Trade and Industry to explore cooperation in the field of hydrogen, fuel ammonia and carbon recycling that includes methanation.
Separately, the two sides also signed the third extension of an MoU signed between Oman and Japan Organization for Metals and Energy Security in the field of crude energy, natural gas and clean energy.
In recent months, a number of Japanese energy corporations have also signed agreements to offtake liquefied natural gas (LNG) from Oman LNG on long-term supply contracts.
