Samsung C&T to take part in large-scale Omani green ammonia project

[Courtesy of Samsung C&T]

South Korea’s Samsung C&T Corp. is collaborating with multinational companies for a large-scale green ammonia project in Oman.

Samsung C&T’s construction division announced on Wednesday that it secured the exclusive business rights for the SalalaH2 Green Ammonia Project, a green ammonia production project in Oman, by forming a consortium with Japan’s Marubeni Corp. and Oman’s state-owned energy company OQ.

The Samsung C&T consortium signed an agreement for the development and land use of the SalalaH2 Green Ammonia Project with Hydrom in Muscat, Oman, the day before, the company said.

Hydrom is a company set up by the Omani government to promote the green hydrogen business.

To achieve its aim to become the world’s largest green hydrogen hub, Oman selected three green hydrogen zones in the central and southern regions that are suitable for green energy production, and after selecting a business developer for the first phase in the Duqm region in the first half of 2023, the country has now selected a green hydrogen and ammonia business operator for the second phase in the Salalah region.

The Samsung C&T consortium was granted the exclusive business rights without competitive bidding by the Omani government in recognition of its capabilities in renewable energy as well as clean energy businesses such as green hydrogen and ammonia. The project is thus expected to progress quickly.

The SalalaH2 Green Ammonia Project aims to produce one million tons of green ammonia annually within a free zone in Salalah, a port city in southern Oman.

The project involves creating a large-scale complex to generate renewable energy including solar and wind power and utilizing OQ’s existing ammonia plant to produce green ammonia.

Samsung C&T plans to begin construction in 2027 after preliminary surveys and coming up with a basic design, with the facility targeted to be fully operational in 2030. The produced green ammonia will be exported to global markets, including Korea and Japan, contributing to the production of carbon-free clean energy.

“Participating in a global-scale green ammonia project with strong partners in the global energy sector will strengthen Samsung C&T‘s position as a global leader in sustainable energy solutions,” according to Lee Byung-soo, head of energy solutions business at Samsung C&T’s construction division.