DEME and OQ have signed an agreement with BP, which will join the companies as an equity partner and operator in the HYPORT Duqm project, a large-scale green hydrogen scheme being developed in Oman.
BP will acquire a 49% stake, while OQ and DEME will each maintain a 25.5% stake in the project company.
The agreement will enable BP to become part of the green hydrogen project situated in Oman’s Special Economic Zone at Duqm (SEZAD). The transaction will be completed in the third quarter of 2024, the partners said.
The first operational, large-scale green hydrogen project in Oman HYPORT Duqm is being developed on an area of 150 km² within the SEZAD at Duqm in Oman. The production of green hydrogen to green ammonia will be powered by both wind and solar energy, with a combined capacity of approximately 1.3 GW under Phase 1 and potentially more than 2.7 GW upon completion of Phase 2.
The downstream operations plan is to be fully integrated with the infrastructure at the Port of Duqm to handle green molecules and channel them for export into European and Asian markets.
The molecules could possibly serve to apply across several industries that are on their path to sustainable decarbonization.
Currently, the project is in the pre-front-end engineering design phase, with the commercial operations date scheduled for 2030-2031.
In June 2023, DEME and its development partner OQ, the leading global integrated energy group in Oman, signed a project development agreement with Hydrom, which represents Oman’s national interest in green hydrogen and is regulated by the Ministry of Energy and Minerals.