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

At a signing ceremony in Muscat on Tuesday, Hydrogen Oman (Hydrom), an independent entity founded by the government to orchestrate and deliver the nation’s green hydrogen strategy, announced the consortium was a winning bidder in the second round of a green hydrogen tender process.

This provides Actis and Fortescue with exclusive rights to a high-quality site, allocated to the development of a future project.

The project, which is currently in feasibility stage, is expected to involve construction of up to 4.5 GW of wind and solar renewable energy resources that will power electrolysers with the potential to produce up to 200 000 t/y of green hydrogen.

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.

“Oman is strategically located between two key green hydrogen demand centres in Europe and Asia. This, in addition to, our tier-one infrastructure and logistics capabilities have enabled us to leverage our first mover advantage in the global hydrogen industry,” said Energy and Minerals Minister Salim bin Nasser Al Aufi.

Fortescue and Actis are both major players in the green energy space globally. Actis has an extensive track record developing renewable power projects, with 21 GW of renewable energy capacity (16 GW operational, 5 GW under construction or contracted) managed by the firm to date.

Fortescue is a global leader and innovator in the green hydrogen industry with a pipeline of projects globally, including three which have reached final investment decisions.

Fortescue and Actis both believe a successful green hydrogen sector is a prerequisite for a successful transition away from fossil fuels and towards the decarbonisation of many hard-to-abate sectors.

“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,” commented Fortescue Middle East, Europe and North Africa president Moataz Kandil.

“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. This strategic partnership between Hydrom, Actis and Fortescue will not only help to drive the development of a large-scale green hydrogen project in Oman, but will lead the way for others around the world to follow, cementing Oman as a powerhouse in green molecules.”