POSCO Holdings consortium to build green hydrogen plant in Oman

A global consortium led by South Korea's POSCO Holdings Inc. has signed an agreement with Oman's state-run enterprise Hydrogen Oman LLC (Hydrom) to exclusively develop and produce green hydrogen in Duqm, a port town in central-eastern Oman, for the next 47 years.

The consortium consists of four Korean companies (Samsung Engineering Co., Korea Southern Power Co., and Korea East-West Power Co) and two companies each from France (Engie SA) and Thailand (PTT Exploration and Production Public Co.)

The consortium will exclusively develop and produce a green hydrogen project in the Dukum region of Al-Usta province, about 450 km southwest of the capital Muscat.

With a site area of about 340 square kilometres, a 5-gigawatt renewable energy complex will be developed to produce 220,000 t of green hydrogen per year. Most of the green hydrogen produced locally is synthesised into 1.2 million t of ammonia for safety and efficiency, and then transported to Korea for hydrogen reduction steelmaking.

After a period of business development, construction of renewable energy facilities, a green hydrogen plant, and an ammonia synthesis plant will begin in 2027, and construction is scheduled to be completed as early as 30 years.

The POSCO Group aims to produce 7 million tons of hydrogen by 2050, and is developing green and blue hydrogen projects mainly in strategic regions such as Australia, the Middle East, Southeast Asia, and North America.

Green hydrogen is made by using renewable energy sources such as wind or solar power to split water into hydrogen and oxygen. This process is as electrolysis, results in zero carbon emissions, making green hydrogen a potentially key component in achieving global carbon neutrality goals.

Note: This article has been written in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.