Port of Salalah Secures Bio-Fuel Storage Hub Deal: How This Development Impacts Investment Opportunities in Oman
MUSCAT, OCTOBER 10 — The Port of Salalah has entered into a strategic lease agreement with Horizon Energy Salalah to create a Bio-Fuel Storage Hub. This initiative marks a significant advancement in Oman’s renewable energy logistics and enhances Salalah’s position along the critical East–West shipping lane.
The new facility is set to increase regional capabilities for storing and distributing renewable fuels. It supports Oman’s commitment to offering cleaner bunker fuel options for international shipping and aligns with the goals outlined in Oman Vision 2040. This effort further aims to establish Salalah as a diversified green energy gateway.
This bio-fuel hub follows the recent allocation of two green hydrogen blocks in Dhofar to international consortia, including EDF Group–J-POWER–Yamna and Actis–Fortescue. These groups have pledged to produce a total of 378,000 tonnes of renewable hydrogen per year by 2030, with a portion of the output slated for export through the Port of Salalah.
In a prior award granted in December 2023, the consortium SalalaH2, comprising Marubeni, OQ Alternative Energy, Dutco, and Samsung C&T, is also focusing on downstream conversion in the Salalah Free Zone, facilitating exports through the port. Collectively, these projects designate Salalah as Oman’s second hub for green molecule exports, complementing Al Duqm, which serves as a base for six awarded projects in the Al Wusta Governorate.
Port officials have stated that they are working with Hydrom and relevant government entities to ensure that terminal design and implementation meet the developers’ requirements. “The Port of Salalah will be a key player in the export of green molecules. We are dedicated to commencing groundwork as quickly as possible,” remarked a senior official. He noted potential collaborations with strategic partners, particularly A.P. Moller–Maersk, to enhance green fuel logistics as the port expands its clean energy offerings.
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The establishment of a Bio-Fuel Storage Hub at the Port of Salalah not only boosts regional renewable energy capacity but also aligns with Oman Vision 2040, signaling significant opportunities for الشركات in renewable logistics and green energy innovation. Investors and entrepreneurs should seize the momentum in green fuel initiatives, as collaboration prospects with major players like A.P. Moller–Maersk indicate a promising path for strategic partnerships and expansions in the burgeoning clean-energy sector. However, they must remain vigilant of potential regulatory shifts and market dynamics that could influence project timelines and returns.
