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Oman, Germany ink pact to explore green hydrogen value chain

Aiming to strengthen bilateral relations and cooperation in the field of energy, Salim bin Nasser al Aufi, Minister of Energy and Minerals, met Dr Robert Habeck, Vice Chancellor of Germany, Federal Minister for Economic Affairs and Climate Action, during his visit to the Federal Republic of Germany, to discuss the needs of the energy market in Germany, the importance of energy solutions, the role of hydrogen in energy transition, and other topics with mutual interest.

During the visit, Omani and German companies signed several MoUs related to supplying green hydrogen to German refineries, in addition to a letter of intent for the supply of green hydrogen.

A key agreement was signed was between Hydrom and German VNG AG to evaluate the economic potential of building an Omani-German green hydrogen and ammonia value chain. The agreement also entailed exploring a long-term offtake agreement for green hydrogen and ammonia produced in the Sultanate of Oman. Oman LNG also signed an agreement with Securing Energy for Europe (SEFE) for LNG sales and purchase.

Al Aufi was accompanied by Pankaj Khimji, Advisor for Foreign Trade and International Cooperation at the Ministry of Commerce, Industry & Investment Promotion; Maitha bint Saif al Mahrouqi, Ambassador of the Sultanate of Oman to the Federal Republic of Germany; Dr Firas al Abduwani, Director General of Renewable Energy and Hydrogen at Ministry of Energy and Minerals, Eng Abdulaziz al Shidhani, Managing Director of Hydrogen Oman (Hydrom), and Najla al Jamali, CEO of OQ Alternative Energy). The visit aimed at enhancing cooperation between the Omani and German sides in the field of energy. This includes sharing experiences in the field of green ammonia and other energy modern technologies in the field of energy, connecting suppliers with end consumers, and discussing current challenges in the energy market.

Al Aufi emphasized the importance of international cooperation in the field of energy transition during a speech at Berlin Energy Transition Dialogue. He shared Oman’s vision and policy for the energy sector, and the development of green hydrogen projects in Oman and highlighted the importance of aligning standards and certificates for energy and green products taking into account the visions of exporters and importers, linking suppliers to end users, and focusing on local content in the implementation of projects.

Dr Firas al Abduwani, Director General of Renewable Energy and Hydrogen, said that the visit is an opportunity to enhance cooperation and exchange experiences in the energy sector. The aim is to find new markets for low-emission hydrogen and its supportive policies from exporting and importing countries. This step enhances Oman’s position as a major player in the global energy sector.

During the visit, we met with government bodies, energy companies, and heavy industries to view their latest policies, technologies, and innovations in this field which will contribute significantly to our efforts and developing the energy sector in the Sultanate of Oman.

Highlighting the importance of this latest milestone in achieving Oman’s national energy transition goals, Eng. Abdulaziz al Shidhani, Managing Director of Hydrom said, “The agreement will enable the development of a competitive infrastructure for production and export of hydrogen by building a state-of-the-art integrated value chain that will not only support the sustainable growth of the sector but the rise of adjacent industries as well.”