DEME and OQ have announced a significant development in the HYPORT Duqm project by securing bp as an equity partner and operator. Under the new agreement, bp will acquire a 49% stake in the project, while DEME and OQ will each retain a 25.5% share. The transaction is set to be completed by Q3 2024.
The HYPORT Duqm project, located in the Special Economic Zone at Duqm (SEZAD), Oman, represents the first large-scale green hydrogen initiative in the country. Spanning 150 km², the project will use wind and solar energy to produce green hydrogen and ammonia, with a combined capacity of approximately 1.3 GW for Phase 1 and potentially over 2.7 GW upon completion of Phase 2.
The project aims to integrate downstream operations with advanced infrastructure at the Port of Duqm, facilitating the export of green hydrogen to European and Asian markets. This initiative is expected to support various industries in their decarbonization efforts. Currently, in the pre-front-end engineering design phase, commercial operations are anticipated to commence between 2030 and 2031.
DEME and OQ initially entered into a Project Development Agreement with Hydrom in June 2023, representing Oman’s national interest in green hydrogen, which is regulated by the Ministry of Energy and Minerals.
DEME HYPORT Energy, which encompasses all of DEME’s green hydrogen interests, is central to DEME’s sustainability strategy. The agreement with bp highlights DEME’s commitment to leadership in the green hydrogen sector. In June 2024, DEME furthered its green hydrogen initiatives by signing a Cooperation Agreement with the Egyptian Government to develop a large-scale production facility in Egypt’s western desert, leveraging insights gained from the HYPORT Duqm project.
DEME continues to explore global opportunities and collaborate with local partners on utility-scale green hydrogen and ammonia projects.
