MUSCAT : The agreement will assess the potential for ASYAD Group to utilise green hydrogen produced by OQ Alternative Energy’s project in Duqm, paving the way for cleaner transport and logistics operations and supporting the gradual integration of hydrogen into Oman’s energy system.

The collaboration brings together the energy and logistics sectors and is aimed at creating practical and commercially viable solutions for activities that are traditionally emissions-intensive.

It is also expected to help prepare the domestic market for wider adoption of green hydrogen as the necessary infrastructure, supply chains and supporting ecosystem continue to develop in the Sultanate.

Salim bin Saeed Al-Kamyani, CEO of OQ Alternative Energy, said Oman’s green hydrogen journey is entering a new phase in which the focus is moving from building capabilities to putting them into practical use.

“This partnership represents an important step, as it links the production of green hydrogen with its actual use in the logistics sector, providing an opportunity to build hands-on experience across the value chain,” he said.

Al-Kamyani added that such projects are essential for developing infrastructure, building capabilities and preparing the market for the growth of the hydrogen economy.

Working with strategic partners such as ASYAD, he said, will allow OQ Alternative Energy to test technologies and business models in real operating environments, develop local expertise and identify the requirements needed to scale up green hydrogen solutions in the future.

He noted that Oman possesses strong natural resources and capabilities to strengthen its position as a producer and exporter of renewable energy and green hydrogen. However, he stressed that the sector’s growth will also depend on creating domestic demand and opening new opportunities for hydrogen use across different areas of the economy.

Such demand, he said, could improve the economic viability of hydrogen projects, encourage the establishment of related industries and maximise in-country value.

Ahmed bin Ali Al Balushi, CEO of ASYAD Drydock & Infrastructure Services at ASYAD Group, said reducing emissions in the transport and logistics sector requires scalable practical solutions backed by a reliable energy ecosystem.

He said the collaboration provides an opportunity to translate Oman’s emerging green hydrogen capabilities into real-world applications throughout the logistics and transportation value chain.

ASYAD, he added, remains committed to developing more sustainable logistics solutions while strengthening the competitiveness of the sector and reinforcing Oman’s position as a global logistics hub connected to international markets.

Its participation in hydrogen-based transport solutions is also expected to help build operational expertise, expand partnerships and develop the infrastructure required for the transition towards lower-carbon transportation.

OQ Alternative Energy’s green hydrogen project in Duqm is the company’s first integrated initiative aimed at deploying green hydrogen solutions and building operational capabilities across the entire value chain.

The project integrates renewable energy generation, hydrogen production, operations, certification, handling and commercial marketing.

It is expected to produce up to 400 kilograms of green hydrogen per day, with the potential for future expansion through a dedicated hydrogen refuelling station in Duqm.

Located within the Special Economic Zone at Duqm, the project benefits from the area’s extensive industrial and logistics activities, allowing green hydrogen production and consumption to be studied within an integrated operational environment.

The initiative is designed to connect different stages of the hydrogen value chain through to final use, helping develop practical expertise in operations, certification, infrastructure, safety requirements and demand assessment.

These capabilities are expected to provide an important foundation for the expansion of Oman’s hydrogen sector in line with Oman Vision 2040 and the country’s national target of achieving net-zero carbon emissions.

The MoU marks a new phase in cooperation between OQ Alternative Energy and ASYAD Group, with both sides working towards transforming the agreement into an actionable framework.

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