The project has the potential to produce up to 200,000 tonnes of green hydrogen per year, they explained. Actis and Fortescue have won exclusive access to a prime location designated for the realization of a forthcoming project.
“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. I would like to congratulate Actis and Fortescue on their awarding and look forward to working together to realise our collective vision,” said HE Eng Salim bin Nasser Al Aufi, Minister of Energy and Minerals and Chairman of Hydro in a statement.
The project is currently in its feasibility phase, and expects the establishment of approximately 4.5GW of wind and solar renewable energy facilities to energize electrolyzers capable of producing up to 200,000 tonnes of green hydrogen annually. As per the current blueprint, this hydrogen output is slated for distribution to local industrial consumers and could also be refined into derivatives like green ammonia for exportation through the existing port of Salalah.
Both Fortescue and Actis have had an extensive role in green energy space globally. Actis has an extensive track record developing renewable power projects, with c.21 GW of renewable energy capacity managed by them till now. Meanwhile, 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.
“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,” said James Mittell, Director, Energy Infrastructure at Actis.
Mittel explained that the company has a well-defined strategy focused on finding opportunities with characteristics that fit the attributes of an Actis investment, including closely aligning with our sustainability agenda.
This successful bid award represents an exciting milestone in Actis’ hydrogen journey, the company said.
The project is considered a compelling investment opportunity to develop a major green hydrogen project, to be underwritten by strong demand for offtake, a stable and supportive regulatory environment and a prime strategic location.
“Actis and Fortescue are completely in sync with our ambitions to decarbonise and create a new green energy industry globally,” explains Moataz Kandil, MENA President at Fortescue.
“ 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,” added Kandil.
