ENGIE and POSCO Led Consortium to develop a 1.2mtp Green Ammonia Project in Oman

• ENGIE and POSCO led consortium announced as winner of land block (Z1-02) offered by Hydrom
• Venture marks the continuation of ENGIE's and POSCO's alliance, which began through the signing of an MoU in March 2022
• Project reaffirms ENGIE's commitment to accelerating the GCC's low carbon transition

MUSCAT, Oman, June 22, 2023 /PRNewswire/ -- ENGIE, a global leader in low-carbon energy and services, together with POSCO, one of the world's largest steel producers, have announced their spearheading role in a consortium set to mobilize Oman's renewable energy resources through the development of a 1.2mtp Green Ammonia project. Other partners in the consortium include Samsung Engineering, Korea East-West Power Co. (EWP), Korea Southern Power Co. (KOSPO), and FutureTech Energy Ventures Company Ltd. (a subsidiary of PTTEP).

The ENGIE and POSCO led-consortium has been named the winner of land block (Z1-02) offered by Hydrom, the orchestrator and master planner of Oman's green hydrogen industry. Spanning 340 sq km, the concession block is located in Duqm, with downstream elements to be established at the Port of Duqm.

The land block will include a total renewable energy capacity of approx. 5GW which comprises wind and solar power, in addition to battery energy storage (BESS) and a hydrogen plant that will produce 200 kilotons per annum (ktpa) of green hydrogen. The hydrogen will then be transported by a pipeline to the Special Economic Zone at Duqm where it will be converted into approximately 1.2 million tons per annum (mtpa) of green ammonia for export. The Commercial Operation Date (COD) is expected by 2030.

"This venture marks a significant leap forward in its worldwide dedication to expediting the transition to low-carbon energy. With presence in Oman for more than a quarter-century, we reaffirm our unwavering commitment to supporting the energy transition in the country and the region. By joining forces with our consortium partners, we aim to unlock Oman's extraordinary renewable energy potential while capitalizing on their expertise and capabilities. Ultimately, this collaboration propels ENGIE toward its global ambitions of attaining a hydrogen capacity of 4GW by 2030." expressed Frederic Claux, Managing Director Flexible Generation & Retail, AMEA and Country Manager GCC from ENGIE.

In March 2022, POSCO and ENGIE signed a Memorandum of Understanding (MoU) to explore joint development opportunities for green hydrogen production and related infrastructure in the Middle East, Australia, and Latin America. This venture symbolizes a continuation of their combined efforts and a monumental stride in ENGIE's quest for net-zero carbon by 2045 and POSCO's ambition for a green hydrogen-based steel business by 2050.

Her Excellency Véronique Aulagnon, Ambassador of France to Oman, said: "France, as part of the European Union, and Oman share a common ambitious target to achieve carbon neutrality by 2050. France commends the remarkable leadership by the Sultanate of Oman to scale up renewables in its energy mix and develop a strong green hydrogen portfolio. As the French Ambassador to Oman, I am delighted to see a major French company, Engie, who has been active in Oman for over two decades, become a part of this transformative venture in the Sultanate of Oman and confirm its position as a key player in the global energy transition. I am confident that this collaboration will yield significant results in terms of sustainable development and job creation"

With strategic relevance for ENGIE and the involved nations, the project feeds into ENGIE's aim of generating 80GW of renewable capacity and 4 GW of electrolyzer capacity by 2030, thereby solidifying its global standing in the zero-carbon transition. The project is also in line with Korea's national decarbonization objective of a 40% carbon footprint reduction by 2030, and aids in realizing Oman's Vision 2040 that centers around energy transition and industry diversification.

The project contract will last for a period of 47 years, broken down into a seven-year development and construction phase followed by a 40-year operational period, and is set to roll out within a month of the contract signing. Construction is projected to begin in 2027, with the first shipment of green ammonia to Korea planned for the second half of 2030, thereby marking a significant step in sustainable development. The consortium will carry out the feasibility and technical studies, in order to finalize the total capital expenditure requirement for the project. 

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About ENGIE Group

ENGIE is a global reference in low-carbon energy and services. With its 96,000 employees, its customers, partners and stakeholders, the Group is committed to accelerate the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally-friendly solutions. Inspired by its purpose ("raison d'être"), ENGIE reconciles economic performance with a positive impact on people and the planet, building on its key businesses (gas, renewable energy, services) to offer competitive solutions to its customers. Turnover in 2022: 93.9 billion Euros. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Euro 100, MSCI Europe) and non-financial indices (DJSI World, Euronext Vigeo Eiris -  Europe 120 / France 20, MSCI EMU ESG screened, MSCI EUROPE ESG Universal Select, Stoxx Europe 600 ESG-X).

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