Port of Salalah Secures Bio-Fuel Storage Hub Deal: Implications for Oman’s Clean Energy Export Growth
المسكات عنب طيب الشذا: The Port of Salalah has entered into a strategic lease agreement with Horizon Energy Salalah to develop a Bio-Fuel Storage Hub. This initiative represents a significant advancement in Oman’s renewable energy logistics and reinforces Salalah’s position on the critical East-West shipping route.
The new facility will enhance regional capabilities for storing and distributing renewable fuels, supporting the Sultanate’s efforts to provide cleaner bunker options for global shipping. According to port officials, this project aligns with the objectives of Oman Vision 2040 and strengthens ongoing initiatives to establish Salalah as a diversified green energy hub.
This bio-fuel hub follows the recent awarding of two new green hydrogen blocks in Dhofar to international consortia, including EDF Group–J-POWER–Yamna and Actis–Fortescue. Together, these groups have pledged to produce a total of 378,000 tonnes of renewable hydrogen annually by 2030, with a portion earmarked for export via the Port of Salalah. Additionally, an earlier award in December 2023 went to SalalaH2, a consortium of Marubeni, OQ Alternative Energy, Dutco, and Samsung C&T, which also aims for downstream conversion and exports in the Salalah Free Zone.
Collectively, these undertakings position Salalah as Oman’s second hub for green molecule exports, complementing Duqm, which facilitates exports from six projects in the Al Wusta Governorate.
Port leadership announced that they are working closely with Hydrom and relevant government agencies to ensure that terminal design and development are aligned with the needs of developers. "The Port of Salalah will play a pivotal role as the gateway for green molecule exports. We are committed to commencing groundwork as quickly as possible," stated CEO Keld Mosgaard Christensen in remarks to the Observer. He emphasized the potential for collaboration with strategic partners, particularly A.P. Moller–Maersk, in advancing the port’s clean energy logistics portfolio.
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The establishment of a Bio-Fuel Storage Hub at the Port of Salalah presents significant opportunities for businesses in Oman, particularly in the renewable energy sector, aligning with Oman Vision 2040 goals. Investors and entrepreneurs should focus on the emerging green-fuel logistics and hydrogen export markets, as these initiatives could redefine regional energy dynamics and catalyze economic diversification. With the collaboration potential with major players like A.P. Moller–Maersk, now is an opportune moment to engage in partnerships that leverage Salalah’s strategic position in the global supply chain.
