ENGIE and POSCO Head Up Consortium for Groundbreaking 1.2mtpa Green Ammonia Project

Oman: ENGIE and POSCO consortium have been awarded land block (Z1-02) in Duqm by Hydrom, the orchestrator of Oman's green Hydrogen industry. The awarded land block, spanning 340 sq km, is part of the "Hydrom Phase A Round 1" call for projects and will house downstream elements at the Port of Duqm.

ENGIE and POSCO are teaming up once again after signing an MoU in March 2022. The two companies, along with Samsung Engineering, Korea East-West Power Co. (EWP), Korea Southern Power Co. (KOSPO), and FutureTech Energy Ventures Company Ltd., a subsidiary of PTTEP, are leading a consortium aimed at harnessing Oman's renewable energy resources. They plan to achieve this through the development of a green Ammonia project that will have a capacity of 1.2 million tonnes per year.

A new renewable energy project has been announced that will add up to 5 GW of wind and solar capacity. The project also includes the installation of a Battery Energy Storage System (BESS) and a renewable Hydrogen plant with a capacity of up to 200 ktpa. The Hydrogen produced will be transported through a pipeline to the port of Duqm where it will feed into an Ammonia production plant. The project aims to export 1.2 mtpa of green Ammonia to Korea by 2030.

A new project has been announced with a contract lasting 47 years, comprising of a seven-year development and construction phase followed by a 40-year operational period. The consortium responsible for the project is expected to begin construction in 2027 and ship the first batch of green Ammonia to Korea in the second half of 2030. The feasibility and technical studies will be conducted by the consortium to finalize the total capital expenditure required for the project.

ENGIE's industrial expertise is set to benefit a new venture, which aims to develop renewable energies, renewable Hydrogen, and flexible assets like batteries. This aligns perfectly with the Group's strategy to accelerate the transition to Carbon neutrality. Sebastien Arbola, Executive Vice President in charge of Flex Gen & Retail activities, stated that this project will contribute to several of their 2030 goals, including reaching 4 GW of Hydrogen capacity and 10 GW of batteries.

ENGIE has demonstrated its unwavering commitment to advancing the low-Carbon transition of the Gulf Cooperation Council through its latest project. The initiative equally aligns with Korea's national decarbonization objective, which sets out to reduce the country's Carbon footprint by 40% before the year 2030.