Another step forward for Oman’s green hydrogen ambitions: A consortium led by South Korea’s steelmaking company Posco Group was awarded a USD 6.7 bn contract to set up what they described as the world’s largest green hydrogen plant in Oman’s Duqm, The Korea Economic Daily reported on Friday, citing sources it says have knowledge of the matter.

What we know: The consortium consists of six companies including four Korean firms, French energy firm Engie, and a Thai corporation, KED reports. Posco will hold a 28% stake in the group, while French energy firm Engie will hold a 25% stake. The remaining ownership will be divided among two unnamed Korean state-run power companies with a 24% stake each, a 12% stake for Samsung Engineering, and the remaining 11% for Thai’s PTT Exploration and Production company.

Who is doing what: Posco Holdings, the group’s investment arm, is set to lead the project and manage the plant-building processes in the country, KED notes. Samsung’s construction unit will be tasked with the engineering, procurement and construction (EPC) of the facilities, while the other companies will either produce or sell the green hydrogen generated by the plant.

What we don’t know: The sources did not provide details about the planned production capacity of the plant or an expected timeframe for the project, but a signing ceremony is expected on 21 June by the Omani authorities, according to the Korean news outlet.

June is an eventful month for Oman’s green hydrogen: Oman’s state-owned hydrogen company Hydrom — owned by Energy Development Oman — signed three agreements earlier this month granting the first three blocks of land for planned green hydrogen plants worth USD 20 bn. The three projects will have a cumulative production volume of 500k tons annually. It had signed six binding term sheet agreements — which it said were worth in excess of USD 20 bn at the time — with several regional and international developers for the production of green hydrogen back in March.

The sultanate has big ambitions: Oman is on track to become the sixth-largest exporter ofhydrogen globally, according to a recent International Energy Agency report (pdf). Meeting Oman’s target of producing 1 mn tons of low-carbon hydrogen annually by 2030 will require a 50 TWh increase in renewable power — which is more than the current size of the country’s entire electricity system. However, Oman’s abundant renewable energy resources, vast tracts of land, existing fossil fuel infrastructure that can be repurposed, and extensive expertise in handling and exporting LNG and ammonia should help the country reach its target.

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