bp acquires major stake in 2.7GW hydrogen project in Oman

bp has revealed it will acquire a 49% stake in a 2.7GW hydrogen and ammonia production project in Oman, dubbed Hyport Duqm.

Announced during the oil and gas major’s latest quarterly results report, bp signed the agreement on June 13 (2024) with OQ and Dredging, Environmental and Marine Engineering (DEME) to purchase the stake in project Duqm – subject to regulatory approvals.

Whilst bp stated that the initiative could produce up to 57,000 tonnes of green hydrogen per year, H2 View reported last year that it will produce more than 650,000 tonnes a year of green ammonia for export, once it completes its second phase.

The project will be powered by both wind and solar energy, with a capacity of approximately 1.3GW in its first phase before scaling up to 2.7GW. The transaction between bp, OQ and DEME is expected to be completed in Q3 2024.

Speaking during the company’s Q2 2024 results presentation, CEO Murray Auchincloss announced bp would invest in five to 10 hydrogen projects this decade.

“[bp] is in action to high grade and focus our portfolio from 30 opportunities to five to 10 potential investments that we can progress this decade,” he said.

“Progress is happening now. At Castellon, together with our joint venture partner we are taking our first final investment decision (FID) to develop and produce industrial-scale green hydrogen.”

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