- Oman targets 1.4M tonnes of green hydrogen output by 2030.
- UES, Sungrow to assemble electrolysers, boosting local skills.
- Supports the Duqm green ammonia project and regional exports.
Oman is dedicated to achieving 1.4 million tonnes of green hydrogen production capacity by 2030 via collaborations with global developers, with the most recent move being United Engineering Services’ partnership with Sungrow Hydrogen for local electrolyser assembly activities.
Sungrow runs 3GW of electrolyser production capacity in China, while Oman has designated 50,000 square kilometres for eight projects aimed at 35 gigawatts capacity, showcasing the alignment of Chinese manufacturing strengths with Middle Eastern resource development approaches.
The collaboration reflects Oman’s strategy for enhancing domestic manufacturing skills in its hydrogen supply chain by utilizing established technology suppliers. UES, which previously concentrated on oil and gas services, will shift its knowledge to hydrogen equipment assembly, reflecting a wider economic diversification taking place throughout Gulf States.
In November 2023, Sungrow enhanced its Hefei facility to achieve a manufacturing capacity of 3GW for electrolysers, enabling production scale to aid in international market growth. The firm manufactures alkaline and PEM electrolysers, gas separation systems, and control technologies, providing comprehensive equipment packages for hydrogen initiatives.
The Omani facility will manufacture electrolysers and gas purification systems for local projects and possible regional export markets. This agreement aligns with Sungrow’s contract to provide equipment for ACME Group’s green ammonia initiative at Duqm, setting a benchmark for the inclusion of Chinese technology in Omani hydrogen projects.
UES offers engineering expertise from the oil and gas, marine, and defense industries to the hydrogen production initiative. The company’s current technical skills offer suitable bases; however, hydrogen technologies necessitate specific knowledge that the partnership framework seeks to cultivate via technology transfer agreements.
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Hydrom's second auction round secured $11 billion in project commitments, increasing Oman's total planned hydrogen production to 1.38 million tonnes annually. This project pipeline indicates a potential need for locally assembled equipment, even though the execution timelines extend over multiple years with varying commercial schedules.
The Duqm green ammonia initiative marks Oman’s initial significant hydrogen venture, with plans to increase capacity from 100,000 tonnes to 900,000 tonnes per year through several phases. Sungrow obtained agreements to provide 1,000 Nm³/h alkaline electrolysers for the first 320MW phase, with delivery expected to finish in 2025.
The collaboration functions amidst changing global hydrogen market dynamics, encompassing demand growth patterns, technology pricing trends, and policy assistance frameworks. Regional manufacturing growth necessitates continuous project pipelines that validate persistent investments in production capacity.