OQ Group targets 5 GW of renewables by 2030
OQAE is leading OQ’S efforts to build resilience into OQ’S existing hydrocarbon portfolio and achieve sustainable growth through efforts on energy efficiency, clean energy and low carbon molecules (LCM)
OQ, the global integrated energy group of the Sultanate of Oman, plans to develop a pipeline of renewable energy projects totalling in excess of 5 gigawatts (GW) of capacity by 2030.
Envisioned for implementation in multiple phases, output from these projects will support the decarbonisation of Oman’s oil and gas sector, as well as industrial clusters distributed around the country, the wholly state-owned group — part of Oman Investment Authority (OIA) — revealed in its 2023 Annual Report.
Significantly, the first phase of projects corresponding to around 400 MW of renewable energy capacity is anticipated to reach a Final Investment Decision (FID) before the end of this year, it said.
The group’s clean energy drive is being spearheaded by OQ Alternative Energy (OQAE) as part of its mandate as a ‘Renewable Energy National Champion’ — a designation conferred by the Ministry of Energy and Minerals.
“In its ongoing commitment to sustainability and decarbonisation, OQAE is leading OQ’S efforts to build resilience into OQ’S existing hydrocarbon portfolio and achieve sustainable growth through efforts on energy efficiency, clean energy and low carbon molecules (LCM) with an objective to build a nonhydrocarbon diversified portfolio with stable returns,” it explained.
Listing achievements on the green hydrogen front during 2023, OQ said its Alternative Energy unit signed Project Development Agreements (PDAS) with Hydrom (the orchestrator of this sector) for legacy green ammonia export projects such as Hyport Duqm, Green Energy Oman (GEO), and Salalah2.
Concession blocks for each of these projects have been secured as well.
The immediate goal, it cautioned, was the need to de-risk these projects in order to progress them to the FID stage.
“The green hydrogen sector, which is part of low carbon molecules, remains a very nascent sector globally with risks in regulations and policies, technology and market.
“Therefore, throughout 2023
OQAE took an active approach by working closely with key players in the ecosystem to structure solutions and progress with developments,” the company explained.
Also making headway are a number of other low-carbon initiatives. They include a green hydrogen refueling station pilot, for which a concept study was completed in partnership with a consortium of public and private sector organisations.
“This initiative aims to test technologies, develop green hydrogen project experience, establish operational safety protocols and shape regulatory frameworks,” said OQ Group in its Annual Report.
Furthermore, OQAE has developed an opportunity pipeline in other low carbon vectors beyond green hydrogen in biogenic fuels such as e-sustainable Aviation Fuel (SAF) and e-methanol.