MoU signed to use green hydrogen in Oman’s logistics sector

Salalah: OQ Alternative Energy Company and Asyad Group have signed a memorandum of understandin (MoU) for the purchase of green hydrogen, within the framework of cooperation between the two sides to develop the uses of green hydrogen in the transport and logistics sector.The MoU includes a study on how Asyad Group can benefit from the production of the green hydrogen project of OQ Alternative Energy in Duqm, which opens the way for employing green hydrogen in transportation and logistics operations, and supports the gradual expansion of its use within the energy system in the Sultanate of Oman. This collaboration reflects the integration of roles between the energy and logistics sectors, enhancing the local value of renewable resources in the Sultanate of Oman, and opening new horizons for operational and commercial solutions in emission-intensive activities.It also contributes to preparing the market for wider adoption of these solutions, in light of the development of infrastructure and value chains related to green hydrogen in the Sultanate of Oman.Salem bin Saeed Al-Kamyani, CEO of OQ Alternative Energy, said that the hydrogen journey in the Sultanate of Oman is entering a new phase, moving from building potential to actually employing it. This partnership represents an important step, as it links green hydrogen production with actual use in the logistics sector, and provides an opportunity to build practical expertise across the value chain.He added that projects of this type are a key pillar for building capacity, developing infrastructure, and preparing the market for the growth of the hydrogen economy, noting that by working with strategic partners such as Asyad, the company will be able to test technologies and business models within actual operational processes, build local expertise, and identify the requirements necessary to expand the application of these solutions in the future.He explained that the Sultanate of Oman has resources and capabilities that qualify it to enhance its position in the production and export of renewable energy and green hydrogen. However, the growth of this sector also requires developing local demand and opening the way for the use of hydrogen in various economic sectors. This would enhance the economic feasibility of projects, support the establishment of hydrogen-related industries, and contribute to maximising the local value of the resources and capabilities that the Sultanate of Oman possesses.Ahmed bin Ali Al Balushi, CEO of Asyad Drydock and Infrastructure Services at Asyad Group, said that reducing emissions in the transport and logistics sector requires practical and scalable solutions, supported by a reliable energy system. This collaboration provides an opportunity to study the use of green hydrogen and translate the emerging capabilities of the Sultanate of Oman in this field into practical applications across the value chain in the logistics and transport sectors.He added that Asyad is committed to developing more sustainable logistics solutions, which will support the competitiveness of the sector and enhance the Sultanate of Oman’s position as a global logistics hub connected to international markets. Its participation in developing hydrogen-based transport solutions represents a practical step to build operational expertise, expand partnerships, and develop the necessary infrastructure to keep pace with the shift towards low-carbon transport.OQ Alternative Energy’s Green Hydrogen Project is the company’s first integrated initiative to deploy green hydrogen solutions; it is designed to build operational capabilities across the hydrogen value chain and lay the groundwork for the future application of these solutions on a wider scale.The project includes the integration of renewable energy, hydrogen production, operations, certification, handling and commercial marketing. The project is expected to produce up to 400 kilograms of green hydrogen per day, with the possibility of expansion through a dedicated hydrogen refuelling station in Duqm.The project benefits from its location in the Duqm Special Economic Zone, which includes industrial and logistical activities that allow for the study of green hydrogen production and its use within an integrated operational environment.The importance of the project lies in linking the various stages up to the final use, which helps to build practical experience in aspects related to operation, certification, infrastructure, safety and estimating the size of demand.These experiences form an important foundation to support the growth of the hydrogen sector in the Sultanate of Oman, and enhance its ability to expand in line with the objectives of the "Oman 2040" vision and the national direction to achieve zero carbon neutrality.The signing of the MoU represents a new phase of cooperation between OQ Alternative Energy and Asyad, as the two parties work to transform it into an actionable framework.By linking green hydrogen production to transportation and logistics applications, this partnership will contribute to building the technical, operational and commercial expertise needed to support future projects and consolidate the foundations of the emerging hydrogen economy in the Sultanate of Oman.