Actis and Fortescue Consortium Awarded Rights to Develop Green Hydrogen Project in Oman

A consortium comprising Actis, a global investor in sustainable infrastructure, and Fortescue, a global integrated green energy, metals, and technology company, has secured the rights to develop, build, own, and operate a substantial green hydrogen project in Oman.

At a signing ceremony held in Muscat, Hydrogen Oman SPC (Hydrom), an independent entity established by the Omani government to spearhead and execute the nation's green hydrogen strategy, announced the consortium as the successful bidder in the second round of a green hydrogen tender process. This grants Actis and Fortescue exclusive rights to a high-quality site designated for the development of a future project.

The project, currently in the feasibility stage, is anticipated to entail the construction of up to approximately 4.5 GW of wind and solar renewable energy resources. These renewable sources will power electrolyzers capable of producing up to 200,000 tonnes of green hydrogen annually. As per the current plan, this hydrogen output is slated for sale to local industrial offtakers and for processing into derivatives, such as green ammonia, for export via the existing port of Salalah.

Eng Salim bin Nasser Al Aufi, Minister of Energy and Minerals and Chairman of Hydrom, expressed optimism about Oman's strategic positioning and favorable conditions for green hydrogen production. He remarked, "Oman's advantageous location between key green hydrogen demand centers in Europe and Asia, coupled with our abundant renewable resources and investor-friendly policies, positions us as an ideal destination for green hydrogen production. I extend my congratulations to Actis and Fortescue on their successful bid and eagerly anticipate our collaboration in realizing our shared vision."

Both Fortescue and Actis are prominent players in the global green energy landscape. Actis boasts a track record in developing renewable power projects, managing approximately 21 GW of renewable energy capacity to date. Fortescue, on the other hand, is a leader in the green hydrogen industry with a pipeline of projects globally, including those that have reached final investment decisions.

Moataz Kandil, MENA President at Fortescue, highlighted the shared vision between Actis and Fortescue in advancing the decarbonization agenda 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. 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,” said Kandil.

Supported by strong demand for offtake, a supportive regulatory environment, and a prime strategic location, the project holds immense potential to drive the transition towards sustainable energy practices while positioning Oman as a key player in the green energy sector.