The coastal country adjacent to the Arabian Sea, Oman, will be investing US$6.7 billion to become the site of the world’s largest “green” hydrogen plant.
The group of companies responsible for the plant’s development will be primarily South Korean and led by the East Asian country’s steelmaker POSCO Holdings Inc (NYSE: PKX) (KRX: 005490), which will hold a 28 per cent equity in the group — according to media reports.
Other companies involved will include Samsung Engineering Co Ltd (KRX: 028050), which will have a 12 per cent interest in the project; two state-run South Korean power companies; the French utility company Engie SA (EPA: ENGI), holding a 25 per cent stake; and Thailand’s petroleum company PTT Exploration and Production PCL (BKK: PTTEP), which will possess the remaining 11 per cent.
It will be built in the port town of Duqm in central Oman with construction expected to commence in 2028, will ideally operate at full capacity 10 years later and will be powered by 25 gigawatts of solar and wind energy, according to local media.
Omani authorities will be hosting a signing ceremony on June 21 with the country’s energy and minerals minister.
وفقا لما ذكرته مصادر مطلعة لصحيفة كوريا الاقتصادية اليومية أمس الجمعة..https://t.co/R3BrCycDeT
— مشاريع (@_omanprojects) June 17, 2023
Samsung will be responsible for the engineering, procurement, and construction of the site’s facilities and the other companies will produce or sell the green hydrogen generated by the Omani factory.
Oman is currently on track to become the world’s sixth-largest exporter of hydrogen by 2030 and number one in the Middle East, according to the International Energy Agency.
The country also wants to produce at least 1 million tonnes of renewable hydrogen by 2030, which would require approximately US$33 billion in cumulative investments, and has a target of becoming carbon-neutral by 2050.
China’s Sinopec (HKG: 0386) also launched a major green hydrogen project in the Mongolian city of Ordos in February with an US$828 million investment. Several media outlets referred to that project as the “world’s largest” at the time.
Posco Group shares dropped by 0.63 per cent Monday to US$75.98 on the New York Stock Exchange.