Monday 20 / May / 2024
Muscat: The Ministry of Energy and Minerals signed today a Memorandum of Cooperation (MoC) in the field of Carbon Capture, Utilisation and Storage (CCUS) and blue hydrogen development in the Sultanate of Oman.
The MoC was signed with Petroleum Development Oman (PDO), Oman Shell, OQGN and Oxy.
The MoC aims to form an expertise house that contributes to the development of the regulatory and strategic framework in this field. The MoC comes as part of the government-led initiatives focused on carbon capture technologies and blue hydrogen production to achieve Oman's energy transition strategy for Energy transition, and the Sultanate of Oman’s announcement of achieving net zero by 2050.
The CCUS technology presents promising solutions to reduce carbon emissions and achieve Net Zero, particularly in the oil and gas production sectors, industries, and fossil fuel-based power plants.
The Sultanate of Oman's National Strategy for an orderly transition to Net Zero has indicated that CCUS will contribute to a significant reduction (approximately 15%) in domestic emissions, thereby facilitating Oman's journey toward Net Zero by 2050.
This MoC represents a continuation of efforts to find practical solutions to reduce carbon emissions and enable pioneering initiatives and future projects related to the field of carbon capture and blue hydrogen production. This objective can be achieved by forming a specialised House of Expertise to conduct a comprehensive techno-economic assessment in the Sultanate of Oman and to contribute to the development of the regulatory framework and strategies necessary for the advancement of this sector.
Workstreams will be established to develop specific technical and organisational aspects throughout the value chain processes, with participation from both the public and private sectors, academic institutions, and experienced investment and research institutions.
Mohsin Hamad Al Hadhrami, Undersecretary of the Ministry of Energy and Minerals said, "It is important to accelerate efforts in utilising the elements of a clean economy, by employing functional solutions and collaborating with our partners in the sector to achieve the targeted results within the designated time-frame, through applying best practices and advanced technical solutions in the field of carbon management systematically and sustainably.”
Dr Firas Ali Al Abduwani, Director-General of Renewable Energy and Hydrogen at the Ministry pointed out, "The study to be carried out by the House of Expert in the field of carbon capture and production of blue hydrogen will contribute to complementing the ongoing efforts by the public and private sectors to reduce carbon emissions. This will involve conducting a comprehensive techno-economic and legislative assessment to shape the future legal framework and establish appropriate regulations to facilitate investments in this field, consistent with Oman's ambitions to achieve Net zero.”
Meanwhile, Occidental Oman and OQ Gas Networks (OQGN), signed a Memorandum of Understanding (MoU) to jointly study potential carbon capture, utilisation, and sequestration (CCUS) projects in Oman.
The MoU outlines the companies’ mutual collaboration to study the development and deployment of CCUS in conjunction with enhanced oil recovery (EOR) projects at Oxy’s production assets in Oman.
Under the terms of the MoU, Oxy Oman and OQGN intend to exchange knowledge and technical expertise to develop strategies enabling the deployment of CCUS projects in Oman in line with the national strategic direction, including carbon capture, transport of carbon dioxide to Oxy’s production assets for EOR, and supporting the development of relevant policies and procedures with the appropriate government bodies.
The strategic collaboration between Oxy Oman and OQGN demonstrates the two companies’ commitment to innovation and advancement of CCUS and future EOR projects in Oman. The MoU also underpins both companies’ dedication to enabling Oman’s long-term Net Zero strategy and global climate objectives.
