Actis-Fortescue consortium to work on large green hydrogen project in Oman

Business Developments & Projects

April 30, 2024, by Aida Čučuk

A consortium between Actis, an investor in sustainable infrastructure, and Fortescue, a green energy, metals and technology company, has been awarded the rights to develop, build, own and operate a large green hydrogen project in Oman.

Hydrogen Oman SPC (Hydrom), an independent entity founded by the Omani government to orchestrate and deliver the nation’s green hydrogen strategy, announced the consortium was the winning bidder in the second round of the green hydrogen tender process.

According to Fortescue, this provides the parties exclusive rights to a high-quality site, allocated to the development of a future project, which is currently in the feasibility stage.

The project is expected to involve the construction of up to circa 4.5 GW of wind and solar renewable energy resources that will power electrolyzers with the potential to produce up to 200,000 tonnes of green hydrogen per year, Fortescue revealed, adding that under the current plan, this is expected to be sold to local industrial offtakers as well as processed into derivatives, such as green ammonia, for export via the existing port of Salalah.

Salim bin Nasser Al Aufi, Minister of Energy and Minerals and Chairman of Hydrom, congratulated the consortium, stating: “Oman is strategically located between two key green hydrogen demand centers in Europe and Asia. This, in addition to, our tier-1 infrastructure and logistics capabilities have enabled us to leverage our first-mover advantage in the global hydrogen industry. The availability of renewable natural resources in Oman coupled with the country’s favorable geopolitical positioning, investor-friendly policies and progressive energy transition strategies make it one of the most suitable countries for green hydrogen production.”

Moataz Kandil, MENA President at Fortescue, commented: “Actis and Fortescue are completely in sync with our ambitions to decarbonise and create a new green energy industry globally. We share a common vision for the pivotal role that green hydrogen and green ammonia will play in forging a sustainable future. Oman not only has great natural resources, but it is also in an ideal location for export and has set up the structures and regulations needed to help enable this industry to flourish.”

James Mittell, Director of Energy Infrastructure at Actis, said: “Green hydrogen represents an important sector in the Energy Transition – no green hydrogen, no net zero… With Governments across the world creating frameworks and standards for green hydrogen and derivatives, Oman is one of the most attractive opportunities for low-cost green ammonia due to its land availability, strong solar and wind resources, port infrastructure and regulatory support… We look forward to continuing our collaboration with Fortescue, the Omani government and local community on this project.”

To note, Actis has circa 21 GW of renewable energy capacity (16 GW operational, 5 GW under construction or contracted) managed by the company to date, while, Fortescue is involved in multiple projects globally, including three which have reached final investment decisions (FIDs).

Just in April of 2024, Fortescue hit several milestones. The company’s dual-fueled ammonia-powered vessel received DNV certificates, U.S. KBR signed a contract to provide its green ammonia technology for Fortescue’s Holmaneset green energy project in Norway and Fortescue Energy and Moroccan OCP Group formed a joint venture (JV), aiming to supply green hydrogen, ammonia and fertilizers to Morocco, Europe and international markets. Moreover, the company officially opened its electrolyzer manufacturing facility in Gladstone, Australia, reaching a new stage in its wider green energy project.