Oman’s Hydrom and Germany’s VNG looking into green hydrogen value chain

Omani hydrogen company Hydrom and Germany’s gas group VNG have signed a memorandum of understanding (MoU) to examine the economic potential of building a green hydrogen and ammonia value chain between the two countries.

The MoU also entails exploring a long-term offtake agreement for green hydrogen and ammonia produced in the Sultanate of Oman, Hydrom said.

“The signing underscores our pivotal role as orchestrators of Oman’s green hydrogen development, especially within the hydrogen value chain, which is essential as Oman advances its ambitions to become a hydrogen-centric economy and actively supports the hydrogen ecosystem,” the company stated.

The agreement between Hydrom and VNG was signed on the sidelines of the Berlin Energy Transition Dialogues conference on March 18 when a business delegation led by Salim Al Aufi, the Energy Minister of the Sultanate of Oman, and Maitha Al Mahrouqi, Ambassador of the Sultanate of Oman to Germany, visited the headquarters of VNG AG in Leipzig.

“Germany has been a long-standing partner of Oman across multiple sectors and in various roles. As our nations transition towards a net zero future, the collaboration between the two nations should only strengthen. Oman is blessed with both conventional and renewable energy resources, a highly motivated and educated human resource, world-class infrastructure, and well-suited geography to address Western and Eastern clean energy demands,” said Salim Al Aufi.

“Oman aims to be a leader in the production of low-carbon and green molecules with a vibrant and attractive hub that attracts developers, technology providers, supply chain and downstream manufacturers in a mutually beneficial arrangement with our partners.”

German-Omani hydrogen collaboration is also part of the agreement recently signed by Oman LNG and SEFE Securing Energy for Europe.

When it comes to partnerships with other European countries, it is worth noting that The Sultanate, together with Port of Amsterdam, Zenith Energy Terminals, and GasLog, is studying the development of a liquid hydrogen supply chain that will deliver Omani green hydrogen to Amsterdam and onwards to Europe.