POSCO and ENGIE to develop 1.2m tpy green ammonia export project

The project is expected to produce over 200,000 tonnes per year of green hydrogen, converting 5GW of renewable power from a 340 square kilometre land block (Z1-02) in Duqm, at an estimated cost of around $7.0 billion. 

The hydrogen will then be transported by a pipeline to the Duqm where it will be converted into approximately 1.2 million tons per annum (mtpa) of green ammonia for export. The Commercial Operation Date (COD) is expected by 2030.

The consortium includes Samsung Engineering, Korea East-West Power Co. (EWP), Korea Southern Power Co. (KOSPO), and FutureTech Energy Ventures Company Ltd. (a subsidiary of PTTEP).

The project contract will last for a period of 47 years, broken down into a seven-year development and construction phase followed by a 40-year operational period, and is set to roll out within a month of the contract signing. Construction is projected to begin in 2027, with the first shipment of green ammonia to Korea planned for the second half of 2030, thereby marking a significant step in sustainable development. The consortium will carry out the feasibility and technical studies, in order to finalise the total capital expenditure requirement for the project.

The project is also in line with Korea’s national decarbonisation objective of a 40% carbon footprint reduction by 2030, and aids in realising Oman’s Vision 2040 that centers around energy transition and industry diversification.