Amnah Pledges Hydrogen Support for Oman's Eco-Friendly Steel Sector

Amnah, a multinational consortium that secured Oman's initial land block through an international auction for green hydrogen development, has disclosed its strategic plan to allocate the renewable hydrogen produced in its multi-billion dollar investment in Duqm for the creation of green steel in the Sultanate of Oman. This crucial commitment to locally utilize green hydrogen was confirmed by Mark Geilenkirchen, the Project CEO, during the recent Green Hydrogen Summit Oman (GHSO) held in Muscat.

The Amnah venture's green hydrogen output will not be exported as a derivative, as is common in such projects; instead, it will be directed towards supporting the production of green steel or intermediate low-carbon commodities such as Hot Briquetted Iron (HBI) and Direct Reduced (DR) iron.

In June, the Amnah Consortium achieved the distinction of being the winner of the first land block (Z1-01) offered by Hydrom, the orchestrator and master planner of Oman's green hydrogen industry. This marked the inaugural round of an international auction process, and the awarded 320 sq km block is situated in Duqm, with downstream elements slated for development at the Port of Duqm.

Comprising Copenhagen Infrastructure Partners (CIP), a Danish-based global leader in renewable energy investments; Blue Power Partners (BPP), specialists in solar and wind projects; and Al Khadra – part of Oman’s Hind Bahwan Group – the Amnah Consortium brings together diverse expertise for a unified green hydrogen initiative.

Of particular significance is the consortium's commitment to directing its green hydrogen output towards industrial decarbonization. This represents a substantial boost to Oman's aspirations to position Duqm as a central hub for investments, especially in hard-to-abate industries that can leverage renewable hydrogen resources, anticipated to be abundant starting in 2030.

Amnah envisions a substantial investment of approximately $6 to $7 billion for a major initiative targeting an initial output of 210,000 tonnes of green hydrogen in the first phase of development. This financial commitment underscores the consortium's dedication to advancing sustainable practices and fostering a robust green hydrogen ecosystem.

The decision to channel green hydrogen into the production of green steel aligns with global efforts to reduce carbon footprints in the steel industry, a traditionally carbon-intensive sector. By opting for green steel and related low-carbon commodities, Amnah demonstrates a forward-thinking approach that not only addresses environmental concerns but also positions the consortium as a catalyst for transformative change within Oman's industrial landscape.

Amnah's groundbreaking commitment to utilizing its green hydrogen output for localized industrial applications, particularly in the production of green steel, signifies a significant milestone in Oman's journey towards a sustainable and environmentally conscious future. The consortium's investment in Duqm aligns with broader global trends toward green hydrogen utilization and decarbonization, marking a pivotal moment for the Sultanate's aspirations in the renewable energy and industrial sectors.