PTTEP and partners awarded a sizable green hydrogen block in Oman, signifying the key milestone into future energy
22 Jun 2023
Bangkok, June 22, 2023 – PTTEP is gearing towards the development of future energy together with 5 world-renowned companies in a large-scale green hydrogen project in the Sultanate of Oman. This reflects PTTEP’s efforts under the strategy to become a low-carbon organization and fostering sustainable growth. The green hydrogen project is expected to commence the production in 2030.
Mr. Montri Rawanchaikul, Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP), stated that PTTEP’s subsidiary FutureTech Energy Ventures Co., Ltd. (FTEV) with its 5 partners based in South Korea and France have been awarded the concession block and entered into a Project Development Agreement and a Sub-usufruct Agreement with Hydrom Oman SPC (Hydrom), a subsidiary under the Omani government, for the exclusive business development and production rights of green hydrogen project for 47 years in Block Z1-02 located in Duqm, East of the Sultanate of Oman. The development of the sizable green hydrogen project marks the company's first stepping stone to the clean energy business with targeted production capacity of approximately 220,000 tons of green hydrogen per year.
The consortium will carry out the feasibility and technical studies, in order to finalize the total capital expenditure requirement for the project.
Block Z1-02 covers approximately 340 square kilometers in Duqm, Oman. The consortium consists of FTEV, a group of South Korean companies including POSCO Holdings, Samsung Engineering Co., Ltd., Korea East-West Power Co., Ltd., and Korea Southern Power Co., Ltd., and MESCAT Middle East DMCC, a subsidiary of ENGIE, French leading renewable company.
This project will be developed as the integrated green hydrogen production including installed renewable energy from solar and wind with planned capacity of approximately 5 gigawatts (GW) and the green hydrogen plant constructed at the awarded concession area. Another development is the ammonia production plant to convert the majority of green hydrogen production output into green ammonia at the capacity of 1.2 million tons per year for exporting to South Korea which will be located in the Special Economic Zone at Duqm. The remaining green hydrogen will be served for Oman’s domestic consumption. The construction is expected to take place in 2027, followed by targeted commercial operations date in 2030.
"Oman is at the forefront when it comes to driving substantial development in green hydrogen. Being granted the exclusive rights for this large-scale project is a significant milestone for PTTEP and our partners in expanding business into clean energy in one of the world’s high potential areas for renewables. PTTEP will leverage our experience and understanding of the energy business in Oman for over 20 years to contribute to the project development. The participation in this green hydrogen project will reinforce other developments of new form of energy in the future, supporting our goal to become a low-carbon organization," Mr. Montri said.
At present, PTTEP has invested in the E&P businesses both upstream and midstream in Oman, including Oman Block 61, a large onshore gas field; PDO (Block 6), Oman’s largest onshore oil field; Mukhaizna (Block 53); Oman Onshore Block 12; and Oman LNG, the only LNG gas liquefaction complex in the country.
Note to Editor
Green hydrogen is identified as the clean energy source. The way of getting green hydrogen is to use electricity from renewable energy such as solar and wind to split the molecule into hydrogen and oxygen. The green hydrogen production process in this way will leave no carbon dioxide, resulting in preventing greenhouse effect to the world.
PTT Exploration and Production Public Company Limited (PTTEP) is Thailand’s national petroleum exploration and production company. PTTEP maintains strengths of the company’s E&P business for energy security while exploring investment opportunities in environmentally friendly energy through new technology and processes. We conduct business with concerns in the environment, society and corporate governance (ESG) for the stable and sustainable growth. www.pttep.com
FutureTech Energy Ventures Company Limited (FTEV), a subsidiary of PTTEP, was established since 2021 with a mission to develop and invest in clean energy business such as renewable energy and hydrogen. In addition, the company will explore business opportunities in low carbon fuels such as methanol and sustainable aviation fuel (SAF).
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