Oman to develop gigantic renewable energy project with bp

Oman to develop gigantic renewable energy project with bp

Oman, in partnership with British energy major bp, is exploring the development of a multiple gigawatt, world-class renewable energy and green hydrogen project in Oman, by 2030. The integrated project is expected to include onshore wind, solar and green hydrogen production.

bp and Oman’s Ministry of Energy and Minerals signed a Strategic Framework Agreement  (SFA) and a Renewables Data Collection Agreement on January 17, 2022, to progress this project, in support of Oman’s 2040 Vision.

The agreement was signed by His Excellency Mohammed Al Rumhy, Minister of Energy and  Minerals of Oman, and Stephen Willis, bp senior vice president in the Middle East.  

As part of the agreement, bp will capture and evaluate solar and wind data from 8,000 square kilometer, an area more than five times the size of Greater London. The evaluation will then support the  Government of Oman in approving the future developments of renewable energy hubs at suitable locations within this area to take advantage of these resources. The renewable energy resources could also supply renewable power for the development of green hydrogen, targeting both domestic  and global export markets. 

This partnership represents a significant evolution of bp’s business in Oman and is aligned with bp’s  strategy, which includes rapidly growing its renewable energy generating capacity and to take  early positions in hydrogen.  bp currently operates Block 61, which produces a third of Oman’s gas demand. In 2021, bp joined  Oman’s national hydrogen alliance, Hy-Fly, to promote the hydrogen industry in Oman, and  established a net zero task force to help develop a ‘roadmap’ for bp in Oman. 

“Today’s agreement represents what bp is able to offer as an  integrated energy company. These projects will build on our gas business, and bring wind, solar and  green hydrogen together in a distinctive and integrated way supporting Oman’s low carbon energy  goals,” bp Chief Executive Bernard Looney said.  

“And we’re not just investing in energy. We are investing in Oman to create and develop infrastructure,  support local supply chains and cultivate the skills and talent needed to usher in this next generation  of energy leaders. We look forward to working closely with the Omani government to take this forward.” 

“This is a proud moment for Oman and a significant step towards delivering our 2040 Vision. In  partnership with bp, we will progress the development of new, world-class solar and wind resources—generating renewable power for the grid and powering the manufacture of green hydrogen to supply  domestic demand and to export to global customers. Over the past 50 years, we’ve advanced our  hydrocarbon production. Today’s agreement signals the next step in our energy journey—unlocking  the potential for Oman as a low-carbon energy hub,“ said Al Rumhy.

Under the SFA, bp and Oman will also consider ways to collaborate in a number of areas, including a  renewables strategy, regulation, the establishment of a renewable energy hub and the development  and reskilling of the local workforce. 

The agreement is subject to final agreement of commercial terms.

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