Consortium Led by POSCO Holdings Secures Exclusive Green Hydrogen Project Rights in Oman

Samsung Engineering, French Engineering, and 4 Other Companies from 3 Countries Participate
Exclusive Green Hydrogen Project Development in Oman Dukum Area for the Next 47 Years

POSCO Holdings-led global consortium (6 companies from 3 countries) has secured the exclusive development rights for green hydrogen projects in Oman. This is the largest exclusive green hydrogen project overseas led by a Korean company. Green hydrogen refers to clean hydrogen produced by splitting water using electricity generated from renewable energy sources such as solar and wind power without carbon emissions.

On the 21st (local time), POSCO Holdings signed a contract with Hydrom in Muscat, the capital of Oman, for the exclusive development, production, and site lease of green hydrogen projects in the Duqm area. Hydrom is a company established by the Omani government to promote green hydrogen projects and is the organizer of this project bidding.

POSCO Holdings participated in this bidding as a global consortium with Samsung Engineering, Korea Southern Power, Korea East-West Power, France’s ENGIE (a global leader in clean energy), and Thailand’s PTTEP (a company specializing in oil and gas exploration and production), and was selected as the final operator.

The consortium led by POSCO Holdings, through this contract, has acquired the exclusive rights to develop and produce green hydrogen for 47 years in the Duqm area of Al Wusta Governorate, approximately 450 km southwest of Muscat. The site area secured by the consortium is about 340 km², equivalent to half the total area of Seoul, and is advantageous for establishing renewable energy complexes as it can utilize existing infrastructure such as roads and ports within the nearby Duqm Special Economic Zone.

The consortium plans to build a 5GW-scale renewable energy complex on the site and produce 220,000 tons of green hydrogen annually. Most of the green hydrogen produced locally will be synthesized into about 1.2 million tons of ammonia for safe and efficient transportation, then imported to Korea for use in hydrogen reduction steelmaking, clean carbon-free power generation, and some quantities will be used in Oman.

The ammonia synthesis plant is planned to be constructed in the Duqm Special Economic Zone considering the ease of maritime transport. The consortium aims to start construction of renewable energy facilities, green hydrogen plants, and ammonia synthesis plants in 2027 and complete them by 2030 after the project development period.

Jo Ju-ik, head of the hydrogen business team at POSCO Holdings, stated, "Oman is one of the countries with the best renewable energy resources in the world and is one of POSCO Group’s key strategic regions pursuing the establishment of a stable overseas hydrogen supply chain. We will successfully build a green hydrogen production model in Oman and emerge as a global leader in hydrogen production."

POSCO Group plans to establish a value chain for the 'green hydrogen business model' by integrating its capabilities in all fields of hydrogen business, from production to transportation, storage, and utilization. Last year, after 54 years since its founding, the group established a holding company and selected hydrogen as one of its seven core businesses alongside steel, battery materials, and lithium. POSCO Group aims to build a global hydrogen supply chain and establish a hydrogen production system reaching 500,000 tons by 2030 and 7 million tons by 2050 through investments in core technologies such as hydrogen reduction steelmaking. To this end, POSCO Holdings is promoting various green and blue hydrogen project developments centered on strategic regions including Australia, the Middle East, Southeast Asia, and North America.

This content was produced with the assistance of AI translation services.