With abundant wind and solar resources enabling competitive renewable hydrogen production, Oman has the ambition to become a world leading renewable hydrogen hub. Following an invitation to become an anchor investor in the coming IPO process on the Muscat stock exchange, Fluxys has committed to acquire a 4.9% stake in OQGN, the state-owned transmission system operator. The partnership is further strengthened by a Memorandum of Understanding (MoU) between Fluxys and OQGN to explore areas of strategic cooperation in the development of Oman’s hydrogen and CO2 infrastructure.
Oman has a major renewable energy potential as solar and wind conditions are among the best in the world. Furthermore, Oman is strategically located with excellent access to hydrogen import markets with ports located on established sea trading routes. With strong government support, a substantial investment plan is currently implemented with 9 hydrogen projects under development.
In September 2021, the Belgian and Omani ministers of energy signed an MoU to promote and develop renewable hydrogen projects together. Belgian players like Port of Antwerp-Bruges and DEME already hold a material presence in the Port of Duqm and the hydrogen space in Oman.
Within this 100% renewable hydrogen strategy, OQGN will play a critical role in developing the country’s renewable hydrogen (and CO2) networks. Therefore, this acquisition fits perfectly with Fluxys’ strategy to connect and invest in new low-carbon energy value chains by developing hydrogen (and CO2) routes towards Belgium and Europe.
Fluxys and OQGN are frontrunners in decarbonisation projects sharing the same renewable future vision. Both company’s infrastructure and projects are highly complementary, translating into a strategic MoU confirming the collaborative ambition of both companies to develop hydrogen, CO2 and green gases infrastructure in Oman.
Talal Al Awfi, CEO of OQ Group and Chairman of OQGN noted that, “Fluxys’ decision to be an anchor investor in OQGN’s IPO demonstrates the strength of OQGN’s investment case and growth potential in Oman and beyond. This investment creates a natural partnership between our businesses as we both seek to support the global energy transition and Oman’s Vision 2040.”
Pascal De Buck, CEO of Fluxys: “This investment aligns perfectly with our strategy to develop low carbon energy value chains through partnerships. As Oman will become a leading export hub for renewable hydrogen, it’s a unique opportunity for Fluxys to play a key role in accelerating the energy transition and bringing renewable hydrogen to Belgium and Europe.”
The listing of OQGN shares on the Muscat Stock Exchange is expected to take place in October 2023, subject to receiving the required regulatory approvals.
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