bp, DEME, and OQ Team Up for HYPORT Duqm Initiative in Oman

DEME and OQ have recently reached an agreement to bring bp on board as both an equity partner and operator for the HYPORT Duqm project. bp will take a 49% stake, while OQ and DEME will each hold 25.5% in the project company. This agreement allows bp to join the green hydrogen initiative located in the Special Economic Zone at Duqm (SEZAD), Oman. The transaction is set to be finalized in Q3 2024.

The HYPORT Duqm project, Oman’s first large-scale operational green hydrogen initiative, is being developed on a 150 km² site within the Special Economic Zone at Duqm. This project will produce green hydrogen and green ammonia using wind and solar energy, with an initial combined capacity of around 1.3 GW in Phase 1 and the potential to exceed 2.7 GW upon completion of Phase 2.

The downstream operations will be seamlessly integrated with the advanced infrastructure at the Port of Duqm to manage green molecules and facilitate their export to European and Asian markets. These molecules could potentially be utilized across various industries pursuing sustainable decarbonization. The project is currently in the pre-front-end engineering design phase, with commercial operations expected to commence between 2030 and 2031.

In June 2023, DEME and its development partner OQ, a prominent global integrated energy group based in Oman, entered into a Project Development Agreement with Hydrom. Hydrom, overseen by the Ministry of Energy and Minerals, represents Oman’s national interests in green hydrogen.

DEME HYPORT Energy, which brings together all of DEME’s green hydrogen initiatives, is a key element of the company's sustainability strategy. As a proactive developer of renewable hydrogen projects, DEME HYPORT Energy aims to lead through early involvement, strategic partnerships, and comprehensive control across the entire value chain. The goal is to ensure that each project produces and supplies all necessary electricity and water, resulting in 100% green hydrogen molecules. The partnership with bp further underscores DEME’s commitment to being a major player in the green hydrogen sector.

In June 2024, DEME signed a landmark Cooperation Agreement with the Egyptian Government to establish a large-scale green hydrogen production facility in Egypt’s western desert. Building on the expertise gained from the HYPORT Duqm project in Oman, DEME will leverage its knowledge to develop this new facility. Additionally, DEME is collaborating with local partners on utility-scale green hydrogen and ammonia projects in other strategic locations, while exploring further opportunities globally.

DEME is a leading contractor specializing in offshore energy, environmental remediation, dredging, and marine infrastructure. The company also pursues concessions in offshore wind, marine infrastructure, green hydrogen, and deep-sea mineral extraction. With nearly 150 years of experience, DEME stands at the forefront of innovation and technology. The company is committed to addressing global challenges such as climate change, population growth, urbanization, rising maritime trade, and environmental issues. Employing around 5,300 skilled professionals and operating one of the most advanced fleets worldwide, DEME is equipped to handle even the most complex projects. In 2023, DEME achieved a turnover of €3,285 million and an EBITDA of €596 million.