BP buys 49 percent, assumes ownership, of Oman green hydrogen project Hyport Duqm

BP has acquired 49 percent in Oman's Hyport Duqm green hydrogen project, the UK oil and gas company announced while revealing quarterly financial results.

"On June 13, BP signed an agreement with OQ and Dredging, Environmental and Marine Engineering NV (DEME) to acquire a 49-per cent stake and operatorship in the Hyport green hydrogen project in Duqm, Oman, subject to regulatory approvals, which could produce around 57,000 tonnes per annum of green hydrogen," the energy giant said in its financial report. The company did not reveal financial details of the transaction.

BP will also assume operatorship of the project, which is being developed on an area of 150 square km within the Special Economic Zone at Duqm.

The project will produce green hydrogen and green ammonia through electrolyzer capacity of 1.3 GW under Phase 1, rising up to 2.7 GW and higher in Phase 2. In the first phase, the project is set to produce ~330,000 tonnes of green ammonia per annum.

The Sultanate of Oman, located on the Arabian peninsula, aims to produce at least 1 million tonnes of green hydrogen a year by 2030, with ambitions of increasing capacity up to 3.75 million tonnes by 2040 and 8.5 million tonnes by 2050.

According to the International Energy Agency, the sultanate is on track to become the largest exporter of green hydrogen in the Middle East by 2030, and the sixth-largest globally.

OQ, owned by the state body Oman Investment Authority, is OIA's integrated energy group.

Hydrom, the orchestrator of Oman's green hydrogen industry, owns a 47-year licence to develop and operate Hyport Duqm.