Samsung C&T to join Oman's green ammonia project

South Korea’s Samsung C&T Corp. announced on Wednesday it will participate in the Salalah H2 green ammonia project in Oman, a major initiative in green ammonia production.

This project aims to produce 1 million tons of green ammonia annually.

To achieve this goal, Samsung C&T formed a consortium with Japan’s Marubeni and Oman's state-owned energy enterprise OQ.

The consortium inked a development and land use agreement with Hydrom on the previous day in Muscat, Oman. Hydrom established by the Omani government, is focused on fostering the green hydrogen sector.

The Omani government is on a strategic path to becoming the world's premier green hydrogen hub. It has designated three locations in its central and southern regions as green hydrogen zones, ideally suited for producing clean energy.

Earlier this year, a business developer for the Duqm region was chosen in the first phase. In the second phase, the focus is on selecting operators for green hydrogen and ammonia production for the Salalah region.

The Omani government, recognizing the Samsung C&T consortium's expertise in renewable energy and green hydrogen and ammonia production, granted them exclusive business rights without a competitive bidding process. This recognition is expected to fast-track the project's implementation.

The Salalah Green Ammonia Project, secured by the Samsung C&T consortium, is located in the Salalah Free Zone, a southern port city in Oman. The plan involves constructing a vast renewable energy complex harnessing solar and wind power. Additionally, it will utilize OQ's ammonia plant for green ammonia production.

Samsung C&T is gearing up to commence construction in 2027, with production starting in 2030.

The green ammonia produced will be exported to various global markets, including South Korea and Japan, contributing to the generation of zero-carbon clean energy.

Write to Hyung-Kyu Kim at khk@hankyung.com