Ammonia Offtake Agreement

Ammonia Offtake Agreement

In December last year, DEME Concessions and OQ announced their new GREEN AMMONIA project HYPORT® duqm. The 250 to 500 MW plant (phase one) will use wind and solar energy to produce green ammonia. This can then be easily exported from the adjacent port. Project partners expect the plant to come online in 2026. In the first phase, the HYPORT® Duqm project will develop a 250 to 500 MW green hydrogen plant in the duqm Special Economic Zone. The commissioning of the plant is scheduled for 2026 and meet the global demand for green hydrogen and its derivatives. HYPORT® Duqm Phase 1 will establish a comprehensive supply-scale energy-to-product value chain that combines unique technological integration with economies of scale and produces competitive green hydrogen and green ammonia. The joint venture project is NEOM`s first partnership with leading international and domestic partners in the renewable energy sector and will be the cornerstone of its strategy to become a major player in the global hydrogen market. It is based on proven, world-class technology and will include the innovative integration of more than four gigawatts of renewable energy from the sun, wind and storage; Production of 650 tons of hydrogen per day by electrolysis with thyssenkrupp technology; Nitrogen production by air separation using Air Products technology; and the production of 1.2 million tonnes of green ammonia per year using Haldor Topsoe technology. The commissioning of the project is scheduled for 2025.

Hydrogen for industrial processes is promising, as large solvent manufacturers of industrial products such as steel or concrete could be counterparties in bankable removal agreements. In some regions, project proponents may be able to develop multi-project facilities that combine large renewable energy generation projects and electrolysers on-site or near large industrial producers or clusters of industrial producers. Niek den Hollander, CCO of Uniper, says: “We need to take hydrogen out of the lab and use it in large-scale applications and marketable industrial solutions – we should make it a market and use its various applications. One way to achieve this is to import green ammonia and convert it into hydrogen, which we envision for Wilhelmshaven on the German North Sea coast. Germany will be heavily dependent on imports if we are to achieve our climate goals with hydrogen. Hydrogen also has the potential to replace natural gas for heating residential and commercial buildings. In this market, prices are usually based on the spot market, which makes it difficult to finance purchasing structures for hydrogen projects in the initial phase. There is no commercial market for hydrogen. To be financially viable, a hydrogen project must have a bankable purchasing system.

Existing hydrogen use cases, which today rely almost entirely on grey hydrogen, could be among the first green or blue hydrogen options that can be funded, as the acceptance picture is already clear and will be easier to model. DEME GroupVicky CosemansHead of CommunicationsT +32 3 250 59 22cosemans.vicky@deme-group.comAbout green hydrogen in OmanGreen hydrogen production is a natural complement to achieving Oman`s Vision 2040 economic goals. Vision Oman 2040 sets a target of more than 90% of non-oil share of GDP by 2040 and a ranking in the top 20 of the Global Innovation Index. Green hydrogen not only contributes to the diversification of economic activity beyond oil-related sectors, but also significantly strengthens the sultanate`s environmental and innovative performance profile, while building on existing supply chains and infrastructure. The novelty of using hydrogen and its other derivatives such as ammonia as a green energy carrier creates the potential for Oman to become a global player in a future raw materials market by acting quickly and anchoring a strong presence in the market. About DEME ConcessionsDEME Concessions oversees the DEME Group`s large and diverse concessions in the areas of renewable energy, marine and port infrastructure, dredging, green hydrogen and special projects. The DEME Group is a world leader in the fields of dredging, solutions for the offshore energy industry, infrared and environmental work. The company can rely on more than 140 years of know-how and is a pioneer in innovations and new technologies. DEME`s vision is to work for a sustainable future by proposing solutions to global challenges: sea level rise, population growth, reduction of CO2 emissions, pollution of rivers and soils, and scarcity of natural resources. DEME has 5,200 highly qualified specialists and a modern fleet of more than 100 vessels. www.deme-group.comAbout OQ and OQ Alternative EnergyOQ is an integrated global energy company with roots in Oman.

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