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Energy

Oil firm OQ to develop Oman green fuels project with consortium

2 minute read

DUBAI, May 18 (Reuters) - A consortium including Oman's state-owned oil firm OQ will develop a renewable energy project in the Gulf state capable of producing millions of tonnes of zero-carbon green hydrogen per year, the developers said on Tuesday.

At full capacity the project will consist of 25 gigawatts of renewable solar and wind energy to produce the hydrogen.

So-called green hydrogen, created by splitting water into its two components using electricity from renewable energy sources, is increasingly viewed as a fuel of the future to reduce carbon emissions from fossil fuels.

Other members of the consortium are Hong Kong-headquartered InterContinental Energy, a renewable energy project developer, and EnerTech, a clean energy investor and developer which is owned by the Kuwait Investment Authority.

"The project will help transform Oman’s skills base and technical expertise in renewable energy, providing a significant number of high value jobs during site construction and operation," the statement said.

Gulf oil-producing countries are trying to diversify their economies by creating new sectors and revenues, including through a big push in renewable energy.

Abu Dhabi plans to produce and export hydrogen as fuel and Saudi Arabia is working on a $5 billion hydrogen project in the NEOM high-tech business zone.

Reporting by Davide Barbuscia; Editing by Alison Williams

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