Oman Shell’s Blue Hydrogen project to support the energy transition
Image Source: Oman Observer
A landmark Blue Hydrogen & Ammonia project being firmed up by Oman Shell for planned implementation at Duqm has the potential to underpin the country’s transition to large-scale adoption of sustainable zero-carbon fuels, such as green hydrogen.
Shell recently announced that it had received the support and endorsement of the Ministry of Energy and Minerals to press ahead with studies to ascertain the technical and commercial viability of the project. The Shell venture is expected to be the first large-scale project of its kind in Oman.
Production of Blue Hydrogen centres on the processing of natural gas into hydrogen and carbon dioxide (CO2). While the CO2 is captured and stored, what’s left from the process is Blue Hydrogen. When further combined with nitrogen, it is converted into Blue Ammonia. As either process is carbon-neutral, hydrogen and ammonia derived from these processes are referred to as ‘low-carbon’.
Significantly, the implementation of a Blue Hydrogen project could serve as a crucial stepping stone towards the widespread adoption of zero-carbon Green Hydrogen in Oman, according to Oman Shell.
As highlighted recently by Walid Hadi, Oman Shell’s Senior Vice President and Country Chair, the proposed project’s location in Duqm will open up opportunities for the supply of blue hydrogen to industrial customers at the Port of Duqm and in SEZAD.
Potential candidates that will have a requirement of hydrogen are major green steel projects that have pledged to use sustainable fuels for their energy needs, and an array of hard-to-abate industries expected to materialize in the SEZ. The use of hydrogen for mobility and transportation has promising potential as well.
Blue ammonia, on the other hand, is expected to be exported to international markets. As for the CO2 that will be captured from these production processes, it will be stored under a collaborative arrangement reached with Petroleum Development Oman (PDO), the largest producer of oil and gas in Oman.
Significantly, the Oman Blue Hydrogen & Ammonia project adds to a growing list of initiatives being pursued by the energy giant around the world in the field of hydrogen development. Many of these ventures will also leverage Shell’s decades-long expertise in Carbon Capture, Utilisation & Storage (CCUS).
“Shell is working to advance hydrogen opportunities in key regions where we have competitive advantage and strong adjacencies with our existing business. We aim to deliver these opportunities to demonstrate the commercial viability of hydrogen and meanwhile, maintain a healthy funnel of emerging opportunities that give us the foundations and flexibility to pursue options in time,” said Oman Shell.
Beyond production, the company also sees opportunities across the hydrogen supply chain, including the storage, transport via pipelines, shipping of hydrogen and end-customer solutions. To enable development of the entire value chain, Shell is able to connect multiple parts of its businesses, it added.
