Advancement of Sur Hydrogen Cluster Study: Implications for Investment and Business Growth in Oman
MUSCAT, JULY 19 — The Sur Hydrogen Cluster and Energy Transition Study, an initiative aimed at supporting the decarbonization of major industries in Sur’s industrial hub, is moving into its detailed feasibility stage, according to Oman LNG, the project’s leading entity.
Central to this initiative is a comprehensive strategy for integrating large-scale renewable energy sources and green hydrogen production. This will assist various industrial, petrochemical, and energy projects in Sur in achieving their Net Zero goals.
During the preliminary phase, the Sustainable Energy Research Centre (SERC) at Sultan Qaboos University (SQU) and the Oman Hydrogen Alliance (Hy-Fly) evaluated the necessary technical, economic, and partnership frameworks to establish Sur as a hydrogen export and low-carbon fuel hub, in line with Oman’s national energy transition objectives.
Key participants in the initiative include Phoenix Power Oman (operator of the Sur Independent Power Project), Oman India Fertilizer Company (OMIFCO), OQ Gas Networks, OQ Alternative Energy, and Madayn, the authority overseeing Sur Industrial City.
Oman LNG provided an update on the project: “We recently conducted a framing session with our key partners, including Oman India Fertiliser Company SAOC (OMIFCO), OQ Gas Networks (OQGN), and OQAE, to shape the Sur Hydrogen and Energy Transition Cluster Study. We are finalizing the scope of work, which will precede the tendering for a detailed feasibility study expected to begin in the second quarter of 2025, with the Oman Energy Association (OPAL) managing this process. This initiative reflects our broader commitment to establishing Oman as a leader in green hydrogen and energy transition.”
The project aims to utilize renewable energy for the production of green hydrogen, which will serve as a fuel source for project stakeholders. This transition is anticipated to significantly reduce the volume of natural gas currently used as fuel and feedstock by industries in Sur. The surplus gas could then be redirected by Oman LNG for liquefaction and export. If fully implemented, the Sur Hydrogen Cluster is projected to produce approximately 487 tonnes of low-carbon hydrogen per day.
In addition to the cluster initiative, Oman LNG is exploring various schemes to further its energy transition, energy efficiency, and decarbonization goals.
“Key initiatives for this year include developing a Front-End Engineering Design (FEED) package for the power import project, finalizing concepts for sourcing green power with a viable commercial model, and conducting thorough assessments to enhance energy efficiency,” the majority state-owned company noted in its 2024 Sustainability Report.
Moreover, Oman LNG has conducted a techno-economic analysis of opportunities related to proposals involving solar photovoltaic (PV) power generation capacity, Battery Energy Storage System (BESS) capacity, and flare gas recovery. The company is collaborating closely with OQ Alternative Energy to optimize renewable energy sourcing.
Additionally, this year marks the launch of a new Energy Efficiency Improvement Programme designed to enhance or maintain the thermal efficiency of Oman LNG’s triple-train complex at Qalhat.
“This initiative will concentrate on identifying practical methods to boost efficiency and sustain our top-tier performance. We are currently finalizing the delivery plan for this programme, which emphasizes our ongoing commitment to operational excellence and responsible energy use,” the company concluded.
Special Analysis by Omanet | Navigate Oman’s Market
The Sur Hydrogen Cluster initiative represents a pivotal moment for businesses in Oman, offering significant opportunities in the renewable energy sector. As industries transition towards green hydrogen, this shift not only mitigates risks associated with fossil fuel dependency but also opens avenues for investors to establish themselves in an emerging market poised for growth. Smart entrepreneurs should focus on collaborative projects and sustainable innovations that align with Oman’s Net Zero goals, ensuring they are strategically positioned for the evolving energy landscape.
