Actis-Fortescue consortium awarded rights to develop green hydrogen project in Oman
- Actis and Fortescue awarded rights to develop major green hydrogen project in Oman.
- Consortium has been given exclusive rights to a high quality site, for the development of a large-scale green hydrogen and green ammonia project.
- The Actis-Fortescue project, which was announced today at signing ceremony in Omani capital Muscat in the presence of HE Eng Salim bin Nasser Al Aufi, Minister of Energy and Minerals and Chairman of Hydrom ,has the potential to produce up to 200,000 tonnes of green hydrogen per year.
MUSCAT, 29 April 2024: A consortium between Actis, a leading global investor in sustainable infrastructure, and Fortescue, a global integrated green energy, metals and technology company, has been awarded the rights to develop, build, own and operate a large green hydrogen project in Oman.
At a signing ceremony in Muscat today, Hydrogen Oman SPC (Hydrom), an independent entity founded by the Omani government to orchestrate and deliver the nation’s green hydrogen strategy, announced the consortium was a winning bidder in the second round of a green hydrogen tender process. This provides Actis and Fortescue with exclusive rights to a high quality site, allocated to the development of a future project.
The project, which is currently in feasibility stage, is expected to involve construction of up to c.4.5GW of wind and solar renewable energy resources that will power electrolyzers with the potential to produce up to 200,000 tonnes of green hydrogen per year. Under the current plan, this is expected to be sold to local industrial offtakers as well as processed into derivatives (such as green ammonia) for export via the existing port of Salalah.
HE Eng Salim bin Nasser Al Aufi, Minister of Energy and Minerals and Chairman of Hydrom, said: “Oman is strategically located between two key green hydrogen demand centers in Europe and Asia. This, in addition to, our tier-1 infrastructure and logistics capabilities have enabled us to leverage our first mover advantage in the global hydrogen industry. 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.”
Fortescue and Actis are both major players in the green energy space globally. Actis has an extensive track record developing renewable power projects, with c.21GW of renewable energy capacity (16GW operational, 5GW under construction or contracted) managed by the firm to date. While, 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.
This successful bid award represents an exciting milestone in Actis’ hydrogen journey. The project itself is 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 – Oman has first rate solar and wind resources, and an ideal location from which to export green hydrogen derivatives to major demand centres in Europe and Asia.
The appeal and bankability of the project is underscored by the strong appetite and interest from high-quality lenders: the consortium has received significant support from prominent institutions keen to participate in the financing of the project.
Moataz Kandil, MENA President at Fortescue, added: “Actis and Fortescue are completely in sync with our ambitions to decarbonise and create a new green energy industry 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.”
James Mittell, Director, Energy Infrastructure at Actis, commented: “Green hydrogen represents an important sector in the Energy Transition - no green hydrogen, no net zero. We have been following the sector closely for a number of years; we have 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. 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. Winning this bid with Fortescue is a testament to Actis’ leading position in the global renewables space, at the forefront of the energy transition. We look forward to continuing our collaboration with Fortescue, the Omani government and local community on this project.”