The Korea Hydrogen Alliance, a consortium comprising six companies from three nations, has landed a $6.7 billion deal to construct the world’s largest green hydrogen plant in Oman. The facility is set to advance competitiveness in the burgeoning hydrogen business.
The consortium, including Korean power firms POSCO Holdings and Korea Southern Power, Samsung Engineering, French energy company Engie, and PTTEP, a subsidiary of Thailand National Oil Corporation, will sign the business contract in Oman on the 21st of this month.
The plant will be constructed in the Duqm Free Trade Zone, Oman’s coastal region. POSCO Holdings, owning the largest share (28%), will manage the plant construction, with the rest of the investment divided among ENG (25%), Samsung Engineering (12%), and PTTEP (11%).
The Omani government aims to restructure its oil-dependent industry and produce at least 1 million tons of green hydrogen per year by 2030. The production is expected to increase to 3.75 million tons by 2040 and 8.5 million tons by 2050.
The selection of the POSCO Consortium by the Omani government is seen as recognition of Korean companies’ technological proficiency. The consortium will oversee the entire value chain, from hydrogen production to transportation, storage, and use. POSCO is also responsible for developing and manufacturing hydrogen transport storage tanks and pipelines.
Green hydrogen, produced by water electrolysis powered by renewable sources such as solar and wind energy, is a crucial energy source for carbon neutrality. Despite the higher unit cost than gray and blue hydrogen, economies of scale are expected to lower the costs. The International Energy Agency (IEA) forecasts that by 2030, Oman could produce green hydrogen at the lowest cost of $1.6 per kg, accounting for over half of the Middle East’s hydrogen exports.
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