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OTTCO’s Green Ammonia Storage Initiative: How It Paves the Way for Sustainable Business Growth in Oman

OTTCO’s Green Ammonia Storage Initiative: How It Paves the Way for Sustainable Business Growth in Oman

MUSCAT, JULY 27 — Oman Tank Terminal Company (OTTCO), a subsidiary of the government-owned integrated energy firm OQ, has been officially designated as a ‘National Champion’ for central green ammonia storage. This designation was announced by Hydrom, the master planner for Oman’s green hydrogen sector.

This recognition positions OTTCO among a select group of predominantly state-owned utilities and energy companies responsible for developing and operating shared infrastructure, referred to as Common User Infrastructure (CUI). This initiative supports the growth of Oman’s emerging gigawatt-scale green molecules industry.

The confirmation of OTTCO’s new status was revealed in a recent interview with Eng. Abdulaziz al Shidhani, Managing Director of Hydrom, conducted by The Energy Oman. He emphasized Hydrom’s critical role in advancing the Sultanate’s green hydrogen objectives. “We advise the government on policies and regulations that foster a robust and investment-friendly environment. We lead auction processes and manage contracts while serving as custodians of the Green Hydrogen Strategy, which includes overseeing land master planning and the sector’s long-term vision. Following project awards, developers take charge of implementation, with our focus on ensuring coordination—especially regarding shared infrastructure,” he explained.

Hydrom collaborates closely with ‘National Champions’—key public and private entities assigned specific roles throughout the hydrogen value chain. Other champions include OQ Alternative Energy, which leads investments; Nama Water Services, managing water and power; OQ Gas Networks for gas transport; and Oman Electricity Transmission Company for power transmission.

The importance of green ammonia as a versatile carrier of green hydrogen and a low-carbon fuel is on the rise, particularly for sectors that are difficult to decarbonize. Green ammonia, produced from renewable hydrogen and nitrogen, is safer and more efficient to store and transport than pure hydrogen. It can be used as a carbon-free fuel across shipping, power generation, and potentially industrial heating, offering a cleaner alternative to fossil fuels.

The maritime sector is particularly interested in ammonia as a zero-carbon bunker fuel, while the global fertilizer industry, a significant source of CO₂ emissions, can benefit from green ammonia as a cleaner substitute.

OTTCO’s new designation expands its focus beyond crude oil and fossil fuel storage into the field of green molecules. Its primary facility at Ras Markaz spans 40 square kilometers and currently has a storage capacity of 17.5 million barrels, with future plans to increase this to a world-class 200 million barrels. This site also functions as a strategic hub for importing crude oil to the Duqm Refinery, located approximately 80 kilometers away.

According to OTTCO CEO Eng. Salem bin Marhoon al Hashmi, a recent strategic agreement between OQ and the Dutch liquid logistics company Vopak will help position Duqm as a global storage hub for both fossil fuels and green molecules like green ammonia.

Preliminary studies have already been completed to establish advanced infrastructure for the storage, handling, and export of green ammonia. OTTCO is also in the process of developing a shared smart storage infrastructure and is seeking global partnerships to facilitate knowledge exchange and expedite development.

Last week, Mohsin bin Hamad al Hadhrami, Under-Secretary of the Ministry of Energy and Minerals, visited Ras Markaz alongside Ashraf bin Hamad al Mamari, CEO of OQ Group, to highlight OTTCO’s operations and future plans.


Special Analysis by Omanet | Navigate Oman’s Market

The designation of Oman Tank Terminal Company (OTTCO) as a ‘National Champion’ in green ammonia storage signifies a strategic pivot towards sustainable energy solutions in Oman, potentially transforming the energy landscape. This opens up new opportunities for businesses in renewable energy and logistics, while creating risks around investment requirements and infrastructure development. Smart investors should focus on partnerships with OTTCO and other key players in the hydrogen value chain to capitalize on the growing demand for green fuels in both the maritime and agricultural sectors.

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