The Actis-Fortescue consortium is awarded the rights to develop a green hydrogen project in Oman

• Actis and Fortescue are awarded the rights to develop a major green hydrogen project in Oman.
• The consortium has been granted 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 the signing ceremony in Muscat, capital of Oman, 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 energy. hydrogen per year.

MUSCATELApril 29, 2024: A consortium between Actis, a leading global investor in sustainable infrastructure, and Fortescue, a global integrated green energy, metals and technology company, has secured the rights to develop, build, own and operate a large green hydrogen project in Oman.

At a signing ceremony held today in Muscat, Hydrogen Oman SPC (Hydrom), an independent entity founded by the government of Oman to orchestrate and execute the country’s green hydrogen strategy, announced that the consortium was the winning bidder in the second round of a green hydrogen bidding process. . This provides Actis and Fortescue with exclusive rights to a high-quality site, earmarked for the development of a future project.

The project, which is currently in the feasibility stage, is expected to involve the construction of up to 4.5 GW of renewable wind and solar energy resources that will power electrolysers with the potential to produce up to 200,000 tonnes of green hydrogen per year. Under the current plan, it is expected to be sold to local industrial buyers and processed into derivatives (such as green ammonia) for export through 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 centers of green hydrogen demand in Europe and Asia. This, in addition to our world-class infrastructure and logistics capabilities, has allowed us to leverage our first-mover advantage in the global hydrogen industry. The availability of renewable natural resources in Oman, together 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 award and look forward to working together to realize our collective vision.”

Fortescue and Actis are major players in the green energy space globally. Actis has an extensive track record in developing renewable energy projects, with approximately 21 GW of renewable energy capacity (16 GW operational, 5 GW under construction or contracted) managed by the company to date. Meanwhile, Fortescue is a global leader and innovator in the green hydrogen industry with a global portfolio of projects, including three that have reached Final Investment Decisions.

Fortescue and Actis believe that a successful green hydrogen sector is a prerequisite for a successful transition away from fossil fuels towards the decarbonisation of many hard-to-abate sectors.

This successful tender award represents an exciting milestone in Actis’ hydrogen journey. The project itself is a compelling investment opportunity to develop a major green hydrogen project, which will be supported by strong consumer demand, a stable and favorable regulatory environment and a prime strategic location – Oman has world-class solar and wind resources. and an ideal location. from where to export green hydrogen derivatives to the main demand centers in Europe and Asia.

The attractiveness and profitability of the project are underlined by the strong appetite and interest of high-quality lenders: the consortium has received significant support from prominent institutions eager to participate in the financing of the project.

Moataz Kandil, President of MENA in Fortescue, added: “Actis and Fortescue are completely in sync with our ambitions to decarbonize and create a new global green energy industry. We share a common vision on the critical role that green hydrogen and green ammonia will play in forging a sustainable future. Oman not only has great natural resources, but is also ideally located for export and has put in place the necessary structures and regulations to help this industry flourish. This strategic partnership between Hydrom, Actis and Fortescue will not only help drive the development of a large-scale green hydrogen project in Oman, but will also pave the way forward for others around the world, establishing Oman as a powerhouse in green molecules. “