OQ, DEME Retain Minority Stakes in Hyport Duqm project

OQ, the integrated global energy group of the Sultanate of Oman, and DEME, a Belgian-based offshore energy and marine infrastructure group, will each retain a 25.5 per cent stake in Hyport Duqm, a large-scale green hydrogen project planned at Duqm in the southeast of Oman. It follows last week’s revelation by energy major bp that it has struck a deal to acquire a 49 per cent stake in Hyport Duqm, as well as assume operatorship of the landmark project.

Confirming the new equity structure of the project, DEME said in a statement: “DEME and OQ recently reached an agreement to have bp as an equity partner and operator in the Hyport Duqm project. bp will acquire a 49 per cent stake, while OQ and DEME will each maintain a 25.5 per cent stake in the project company. The agreement will enable bp to become part of the green hydrogen project situated in the Special Economic Zone at Duqm (SEZAD), Oman. The transaction will be completed in Q3 2024.” In a post, Jean-Baptiste De Cuyper, Project Director – Hyport Duqm, welcomed bp’s participation in the project, particularly as the global green hydrogen industry navigates “turbulent times”.

He said: “Not all planned projects will be able to proceed, nor can we expect the exponential demand forecasts to pick up that fast. But let's focus on the essentials: countries like Oman offer excessive renewable energy." "Green hydrogen and its derivatives offer a solution for making additional renewable energy available to nations that better use their locally produced, scarce renewable electricity for direct electrification. Let's keep these essentials in mind and work swiftly on our Energy Transition. There is no time to waste. No second chance,” the Project Director stressed.

Billed as the first large-scale green hydrogen project on track to be operational in Oman, Hyport Duqm is being developed on an area of 150 km² within the Special Economic Zone at Duqm. Solar and wind capacity of approximately 1.3 GW is envisioned for installation in Phase 1 of the project, potentially rising to 2.7 GW at the end of Phase 2. At the downstream end, Hyport Duqm plans to invest in green hydrogen and green ammonia production facilities that will be fully integrated with export infrastructure at the Port of Duqm. While green molecule exports will be targeted at European and Asian markets, there is potential for some of the output to be utilized by industries in support of their decarbonisation goals, according to DEME.

As for the current status of Hyport Duqm, DEME said the project is in the pre-front-end engineering design phase, with commercial operations scheduled for 2030-2031. Galvanised by the initial success of the Hyport Duqm project model, DEME has since established a green hydrogen-focused unit, called DEME Hyport Energy, to support integrated green molecule development schemes. DEME Hyport Energy says it is leveraging its learnings from Hyport Duqm to implement a second Hyport-style venture in Egypt, towards which an agreement was signed in June. “The agreement with bp is further proof of DEME’s commitment to being a global player in the green hydrogen space,” DEME added in a press statement.