Air Products, OQ and ACWA sign JDA to build ammonia production facility in Oman


Air Products, a US-based industrial gases company, OQ, an Oman-based integrated energy group, and ACWA Power, a Saudi-based developer-operator of water and power plants, have signed a joint development agreement (JDA) to build green hydrogen-based ammonia production facility that is powered by clean energy.

To be located in the Salalah Free Zone of Oman, the facility would be equally owned by the project partners.

The signing of the JDA comes after a memorandum of understanding (MOU) in December last year.

Air Products chairman, president and CEO Seifi Ghasemi said: “We look forward to applying our know-how, technology and more than 60 years of experience in hydrogen to help move this project forward and take another significant step in decarbonizing the world."

OQ chairman Mulham Al Jarf said: "This project positions OQ as an energy transition enabler, while playing on our strengths and leveraging our expertise in the downstream chemicals business, particularly in Salalah where we have extensive operations, and our demonstrated ability to off-take products and competitively deliver them to global customers.

“The project fits well with the Sultanates' renewable energy strategy and fosters investments in alternative energy resources, both of which contribute to Oman Vision 2040."

ACWA Power chairman Mohammad A. Abunayyan said: "Our investment in developing and building water desalination and power production plants in Oman started in 2011, and we continue to expand our robust portfolio in the Sultanate.

“Utilising our global expertise, we were successfully able to launch Oman's first utility-scale renewable energy project. Oman continues to be a key market for ACWA Power for its potential, resources and location, making it a tremendous enabler for the production of green hydrogen.”

Currently, Air Products, in a joint venture with ACWA Power and NEOM, is constructing a $5bn green hydrogen-based ammonia production facility powered by clean energy in Saudi Arabia.

The project would include the integration of renewable power from solar, wind and storage, and production of hydrogen by electrolysis, and production of nitrogen by air separation, and production of green ammonia.

Last year, OQ had signed an agreement with Kuwait-based EnerTech and Hong Kong-based InterContinental Energy to build a 25GW green hydrogen plant in Oman, reported Zawya.


Image: Air Products, ACWA Power, OQ officials sign JDA to build green hydrogen-based ammonia production facility in Oman. Credit: Air Products, OQ, ACWA Power/PRNewswire.

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