Sultanate of Oman Ratifies Cooperation for Advancing Blue Hydrogen and Ccus Technologies

By November 10, 2023 3   min read  (623 words)

November 10, 2023 |

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Muscat– Oman’s Ministry of Energy and Minerals formalized a Memorandum of Cooperation (MoC) dedicated to the advancement of Carbon Capture, Utilization, and Storage (CCUS) and blue hydrogen initiatives within the nation.

This MoC, ratified in collaboration with key industry stakeholders including Petroleum Development Oman (PDO), Oman Shell, OQ Gas Networks (OQGN), and Occidental Oman (Oxy), lays the groundwork for establishing a central body of knowledge and expertise. This initiative will steer the development of regulatory frameworks and strategic planning in these critical energy sectors.

Embracing this MoC underscores the Sultanate’s proactive stance on leveraging carbon capture technology and blue hydrogen production as integral to Oman’s energy transition strategy and its commitment to achieving a Net Zero carbon footprint by 2050.

CCUS technologies are poised to offer effective pathways to mitigate carbon footprints, especially within oil and gas production, industrial sectors, and fossil fuel power generation. The National Strategy of Oman underscores CCUS’s potential, projecting a substantial 15% reduction in the nation’s carbon emissions and bolstering Oman’s transition to Net Zero by the mid-21st century.

This MoC signifies an ongoing quest to identify and deploy actionable strategies for carbon reduction, fostering innovative ventures and future-oriented projects in carbon capture and blue hydrogen production. The formation of a specialized House of Expertise is envisaged to perform comprehensive techno-economic evaluations within Oman and to contribute to crafting the regulatory and strategic frameworks essential for this sector’s growth.

Collaborative workstreams will unfold, focusing on the technical and organizational development across the entire value chain, with contributions from governmental bodies, the private sector, academia, and seasoned investment and research entities.

“This strategic collaboration with OQGN will enable our companies to generate opportunities to advance CCUS projects in the Sultanate. We are leveraging Oxy’s global 50-year expertise in carbon management and enhanced oil recovery, and combining it with our decades of partnership and operational success in Oman to develop carbon management solutions in line with the long-term objectives of the Omani government. We believe CCUS has the potential to unlock further development of the hydrocarbon industry while reducing greenhouse gas emissions,” Lauver said. “We are also excited to be part of the CCUS and Blue Hydrogen Policy & Regulatory Framework Terms of Reference where CO2 extraction technologies, such as Direct Air Capture, can be studied in conjunction with initiatives of other stakeholders.”

Mansoor Al Abdali, Managing Director of OQGN, said: “We look forward to working closely with Oxy Oman to jointly develop CCUS and EOR projects, and being a key enabler for the country’s decarbonization initiatives. This agreement emphasizes our commitment as the national gas infrastructure company in leading the development and deployment of CCUS and hydrogen infrastructure to support Oman’s energy transition goals and aspirations. We leverage on our expertise in natural gas transportation to provide the link between emitters of carbon dioxide and various sinks to realize the national agenda in a cost-effective manner.”

Concurrently, Occidental Oman and OQ Gas Networks signed a Memorandum of Understanding (MoU) to co-examine potential CCUS projects in Oman, particularly in tandem with enhanced oil recovery (EOR) initiatives at Oxy’s operational sites.

This MoU envisions a collaborative exchange of expertise and knowledge, focusing on the strategic implementation of CCUS technology in Oman, in alignment with national energy goals. It includes strategies for carbon capture, CO2 transport to Oxy’s facilities for EOR purposes, and the joint development of pertinent policies and guidelines.

The strategic partnership between Occidental Oman and OQGN is a testament to their commitment to pioneering CCUS and EOR projects in Oman, supporting the Sultanate’s overarching Net Zero aspirations and contributing to global climate action targets.



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