ENGIE, a provider of low-carbon energy service solutions, and POSCO, the largest steel maker in South Korea, announced their role in an alliance aimed at promoting renewable energy resources in Oman by developing a green ammonia project with a capacity of 1.2 million metric tons. Other partners in the alliance include Samsung Engineering, Korea East-West Power (EWP), South Korea Power Corporation (KOSPO), FutureTech Energy Ventures Ltd. (a subsidiary of PTTEP Corporation).

The ENGIE and POSCO consortium won the plot (Z1-02) offered by Hydrom, the authority responsible for regulating the green hydrogen sector in the Sultanate and allocating land for projects to developers, which is located in Duqm on an area of 340 square kilometers. A hydrogen extraction plant will be established at the port of Duqm.

The project will include solar and wind power plants with a total capacity of 5 gigawatts in addition to a battery energy storage plant and a plant to produce 200 kilotons of green hydrogen per year. The hydrogen will be transported through a pipeline to the Special Economic Zone at Duqm and then converted into approximately 1.2 million tons annually of green ammonia for export, provided that the commercial operation of the project begins by 2030.