His Highness Sayyid Theyazin bin Haitham al Said, Minister of Culture, Sports and Youth, presided over the opening of the 1st Duqm Economic Forum at the Special Economic Zone at Duqm on Monday, October 16, 2023.
More than 300 local and international figures, representing over 90 companies that are investors and stakeholders in the SEZ, are taking part in the two-day forum. Discussions will highlight the pivotal role of Duqm in achieving Oman’s net-zero carbon neutrality goals by 2050 , and supporting the nation’s aspirations set out in Oman Vision 2040
The highlight of the opening day was the signing of a number of investment agreements and memorandums of understanding linked to six green industry related projects planned for implemented in the SEZ. The projects are as follows:
Ras Markaz Road Project
A testament to the growing bilateral relationship between Oman and Saudi Arabia, this road project will be funded by the Saudi Fund for Development at a cost of RO 57.6 million. The 51km stretch starts from the Duqm Airport roundabout and extends to Ras Markaz, connecting important projects and areas earmarked for renewable energy development. The project will also be implemented by an Omani-Saudi joint venture, represented by Strabag Oman and Al-Rozan Contracting Company of Saudi Arabia. It is the first project to be implemented in the Duqm based on the collaborative model instituted by the two country.
Signing the contract were Dr Ali bin Masoud al Sunaidi, Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ); and Hamid bin Abdulqawi al Yafei, Executive Director of Strabag Oman. Also present was Eng Bandar bin Abdullah al Obaid, Director General of Arab Countries Operations at the Saudi Fund for Development. The project is expected to be completed in the second half of 2025.
Duqm Hyport Usufruct Agreement:
Usufruct agreements were signed with Hyport Duqm, a consortium that includes OQ Alternative Energy Company and DEME Concessions of Belgium, covering the allocation of 150 km2 of land in the SEZ. The consortium will invest in solar and wind capacity to generate 250- 500 MW of renwable electricity for the production of hydrogen derivatives such as ammonia and other by-products.
Signing the agreements were Dr Ali bin Masoud al Sunaidy, Chairman – OPAZ; Eng Salem bin Nasser al Aufi, Minister of Energy and Minerals and Chairman of the Board of Directors of Hydrom; Najla al Jamali, CEO – OQ Alternative Energy; and Guiseppe Stefani, General Manager – DEME Hyport Energy. Planned for development in two phases, the renewable energy capacity is envisaged at 1.3 gigawatts (GW) in the first phase, rising to over 2.7 GW in the second phase.
Ghaleb bin Saeed al Mamari, Vice President of OQ Alternative Energy, said: “We are pleased to sign the two usufruct agreements for the Hyport Duqm project, which will enable us to continue developing the project at the allocated site in the SEZ. This project reflects OQ Group’s commitment to implement its decarbonization plans. It is an embodiment of the energy transformation strategy adopted by OQ to contribute to achieving zero carbon neutrality by 2050.”
Oman Shell Blue Hydrogen & Ammonia project
OPAZ, along with the Port of Duqm Company, signed an MoU with Shell Development Oman (Oman Shell) for the establishment of a Blue Hydrogen and Ammonia project at Duqm together with a carbon capture component. As part of the MoU, a master plan will be prepare to identity possible investment areas in the energy sector in the Duqm SEZ, to help support Oman’s Net Zero strategy.
Signing the MoU were Eng Ahmed bin Ali Akaak, Acting CEO of Duqm SEZ; Reggy Vermeulen, CEO – Port of Duqm, and Walid Hadi, Senior Vice President and Country Chair of Oman Shell. Per the MoU, Oman Shell will conduct studies on energy supply and demand, infrastructure development needs, the impact of the carbon footprint, and decarbonization strategies.
Walid Hadi, Senior Vice President and Country Chair, Oman Shell, said: “We are excited to cooperate in developing decarbonization opportunities in Duqm through dormant oil reservoirs, and since we are the main developer of the Green Energy Oman (GEO) project and the low-carbon Blue Hydrogen project; We see the areas of blue and green hydrogen as important pillars that reinforce each other, contribute to supporting low-carbon investment in the Sultanate of Oman, and pave the way towards diversifying the energy economy.”
BP Green Hydrogen Project
OPAZ signed an MoU with BP Alternative Energy Investments for the establishment of a green hydrogen derivatives project at the SEZ. Powered by 3.3 GW of renewable electricity, the project will produce and export around 150,000 tonnes of green hydrogen derivatives annually.
Eng Ahmed bin Ali Akaak, Acting CEO of Duqm SEZ, signed the MoU With Eng Yousef al Ojaili, Chairman of BP Oman.
POSCO Holdings-ENGIE Joint Venture
OPAZ signed an MoU with the POSCO-ENGIE consortium, which includes a number of Korean companies, for the establishment of a project at the SEZ to produce green ammonia and green hydrogen derivatives. The consortium had previously signed an agreement with the Oman Hydrogen Company (Hydrom) for a project powered by 5.2 GW of renewable energy to produce 1.2 million tonnes of green ammonia project annually.
Ahmed bin Ali Akaak, Acting CEO of Duqm SEZ, signed the MoU with senior executives of POSCO and ENGIE.
Vulcan Green Steel
A total of three agreements linked to the Vulcan Green Steel project at Duqm SEZ were signed as well. An affiliate of India’s Jindal Shadeed Group, Vulcan Green Steel plans to set up a plant with a capacity of 5 million tonnes per year of green steel at a cost of $3 billion.
The agreements were linked to: the Build, Operate and Transfer of the Marine Infrastructure; Sub-usufruct agreement for the Green Steel project; and Sub-usufruct agreement for marine infrastructure.
Signing the agreements were Eng Ahmed bin Hassan Al-Dheeb, Vice Chairman of OPAZ; Reggy Vermeulen, CEO – Port of Duqm; and Mark Bula, CEO – Vulcan Green Steel.
Oman Daily Observer
