Ecolog plans go-ahead for green hydrogen liquefaction similar to LNG in Oman

Ecolog expects to make a final investment decision on a proposed 200,000 mt/year hydrogen liquefaction plant in Oman by the first half of 2026, for deliveries to Europe and Asia, similar to how natural gas is distributed as LNG by ship, Ellen Ruhotas, head of hydrogen midstream at Ecolog, said in Dubai Feb. 5.

The price to produce liquefied hydrogen in Oman, put it on a ship and deliver it to Europe is "significantly cheaper" than producing it in Europe, Ruhotas told the World Hydrogen MENA conference. Green hydrogen is being tested for use in coffee roasting in Amsterdam, replacing natural gas, she added.

The cost to produce naturally occurring white hydrogen in the UAE's northern emirate of Ras Al-Khaimah is expected to be "sub $2/kg," RAK Gas CEO Chris Wood said during a panel later in the day. RAK Ceramics, a customer of RAK Gas, may move to hydrogen as a feedstock instead of gas, he added.

Platts assessed hydrogen Oman alkaline electrolysis at $5.22/kg on Feb. 5, S&P Global Commodity Insights data showed. Hydrogen at $2/kg is equivalent to about $20/MMBtu, compared with $15/MMBtu for the price of gas in Europe, according to Commodity Insights research.

"We are now looking at hydrogen at utility scale," Wood said. Net zero does not imply a 100% shift away from fossil fuels, he added, and ready-made white hydrogen should be part of the mix. Phase 2 exploration of actual wells to discover hydrogen traps in the RAK mountains will begin shortly, he said.

"We are not looking at exporting," Wood said. "We have significant demand in RAK."

France issued its first-ever permit for the exploration of white hydrogen to TBH2 Aquitaine in 2023, according to Commodity Insights. There are also white hydrogen projects in British Columbia and Australia.

"Oman has the same geography we have in RAK," Wood said.

RAK Gas, however, will not abandon gas. "We are going to continue to develop gas because some customers will still need gas, and some customers are interested in hydrogen, like our glass and ceramics customers," Wood said.

Oman itself is also still developing oil and gas, with three blocks being offered for exploration.

Oman has allocated 50,000 sq km of land for green hydrogen projects in Duqm, Al Jazir and Dhofar, with a target to reach 1.4 million mt/year of production by 2030 using wind and solar energy for power.

To help meet that target, Oman plans its third green hydrogen auction by the end of March or after the Eid al-Fitr holidays in early April, Rumaitha Al Busaidi, business and ICV manager at Hydrogen Oman, said on the sidelines of the conference.

The third auction could offer land to consortiums for development, as the first two did, or also allow downstream developers such as ammonia or steelmakers to bid or permit a combination of the two, she said.