The Port of Sohar is expected to play a major role in exporting hydrogen from Oman to Germany. H2international spoke with Dr. Abdullah Al-Abri from Sohar Port and Freezone.
H2international: Mr. Al-Abri, let’s take a look into the crystal ball: Will Germany be supplied with green hydrogen and green steel via the port of Sohar in the future?
Al-Abri: Yes, absolutely. The port of Sohar already plays a key role in the region. We have the infrastructure to produce, store and transport green hydrogen. Ammonia, methanol and steel products are already being exported – not only to Europe, but also to North and South America, South Korea, Japan, Pakistan, China and wider Asia as well as parts of Africa. Our key access to European countries such as Germany is made possible through our partnership with the port of Rotterdam.
Renewable energies such as solar and wind power are already being used, and the export of low-carbon products such as green steel will play an increasingly important role in the future. For this purpose, we are establishing so-called “Integrated Energy Valleys” – this means that the solar and wind parks in Sohar will be connected to storage facilities so that they can supply large industrial plants with renewable energy around the clock for production processes. These are good conditions to support Germany on its path to producing with net-zero emissions by 2050 – a goal we share.
What is planned and how should the transport to Germany be organized?
The basis for cooperation is the memorandum of understanding on mutual support in the energy sector, which was signed by the German and Omani governments in 2022. Dialogues are currently underway with the Netherlands and Switzerland to establish a corridor for the import of green hydrogen. We are in a situation where it is no longer about competing with each other in terms of renewable energy. The market must be developed in a spirit of partnership. This means that, in cooperation with us, the Dutch will open the doors for hydrogen exports from Rotterdam to northern Germany in the coming years. The same applies to the Swiss towards southern Germany. The more countries that participate, the better – the aim is to jointly develop supply chains that benefit everyone. The world needs large quantities of hydrogen, and we must work together to achieve this.
The more countries that participate, the better – the aim is to jointly develop supply chains that benefit everyone”
What are the next steps?
Over the next one and a half years, i.e. from 2025 to the end of 2026, the entire supply chain for renewable energy, hydrogen and low-carbon products is to be developed – from the industrial port of Sohar to Europe. To this end, we are in talks with future customers in Germany such as Siemens or Thyssen Krupp, as well as others in the neighboring countries mentioned, to determine the demand for ammonia, methanol, steel, aluminum or hydrogen in various forms – including liquid. We are approaching this from the end of the chain: starting with those we want to supply. We are discussing price ranges with them, or the point in time when imports can begin. Then we will start with a small to medium-sized commercial pilot project in the first phase – that means we will produce 100,000 to 200,000 tonnes of green hydrogen. This quantity will be used to build the supply chain, which will be further expanded from 2027 onwards. The infrastructure for this upscaling – for example in the form of shipping lines that need to be established for export and import – is to be created as a joint investment by European partners such as Germany and Oman. This will take place in the second phase, once the supply chain has been tested for reliability and initial projects are underway.
So the port of Sohar has a pioneering role in Oman’s hydrogen strategy compared to the other ports and Salalah, where hydrogen projects are also being developed?
Yes, because we already have the basic prerequisites mentioned earlier. This gives us a head start within the region. Take the example of Jindal Shadeed: the Indian steel plant in Sohar is moving towards green steel production and is starting a project in Sohar in which the carbon dioxide generated is captured and then permanently stored (Carbon Capture and Storage, CCS). The Jindal steel plant in Duqm, where large quantities of hydrogen are to be used for steel production, is currently being built in cooperation with Sohar under the name “Vulcan Green Steel”.
Another advantage of the port of Sohar: in the future, we will refuel ships with liquefied natural gas thanks to LNG bunkering – making them cleaner than with diesel. A corresponding joint venture between Total Energies and OQ, formerly Oman Oil Company, the Omani energy investment company, has been signed. The commissioning is scheduled to follow in 2028. This is the first project of its kind in the Middle East – and we want to start H2 bunkering as soon as ships can run on it.
Ultimately, the foundations are being laid in the country to produce clean products such as green steel at low cost – which means, for example, that we will produce polysilicon for photovoltaic systems in Oman itself instead of importing it from China. We also need partners in Germany for this.
We are laying the foundations to produce clean products such as green steel at low cost – for example by producing polysilicon for photovoltaic systems in Oman.”
How can cooperation between Oman and Germany continue?
I see a number of connections between Oman and Germany. Both countries are seriously pursuing the goal of carbon-free production. An industrialized country like Germany can support a country like Oman, which is so heavily dependent on energy production, with its expertise. And Oman can support Germany in producing without carbon dioxide in order to maintain competitiveness with the help of renewable energy and products manufactured accordingly. The necessary capacities for this cannot be built up within Germany.
In my opinion, Oman and Germany share a lot: society in both countries engages in a transparent and open dialogue. In addition, Oman is maintaining its neutrality in the current situation in the Gulf. Moreover, the country is closer to Germany than South Africa or Namibia – and it already has the industrial infrastructure that still needs to be built there.
I see Oman as an “early mover”. This will shorten the time it takes for renewable energies to become available and will also have an impact on price. Because we must act quickly to avoid missing the 1.5-degree target for global warming. Strong partnerships are essential for this, because neither Oman nor Germany can do it alone. We need innovators, producers, joint investments and new trade corridors.
How did you come to focus on sustainably produced energy – at a time when OPEC continues to pursue expansion of the oil market?
Sustainable developments in energy production have been my focus for many years. Initially in the oil and gas sector in close coordination with the Omani government, and then I continued this work for three years as the Sultanate’s representative to the International Energy Agency (IEA) – in cooperation with IRENA, the International Renewable Energy Agency. The focus was on investments in sustainable development, both on the side of energy producers like Oman and on the side of consumers, i.e. European countries, particularly Germany. Energy is a key economic factor for both sides, and it must be sustainably available in order to maintain competitiveness.
From my point of view, it is necessary to take a forward-looking, future-oriented and partnership-based approach to renewable energies – even in times when we are still producing cheap gas and energy from fossil fuels. Capturing carbon dioxide is not enough. That is only a first step. We need new energy sources to supply industrial plants around the clock, for example. Everyone is talking about it, I want to focus on concrete implementation. In my view, this is only possible through continuous dialogue with partners. That is why the port of Sohar has now also become a partner of the Alliance for Industry Decarbonization (AFID) to discuss new technologies.
About the port of Sohar
The industrial port of Sohar is located in the northeast of Oman. The petrochemical industry is particularly well established at the Sohar industrial site. In the future, hydrogen is to be exported from there to Europe and thus also to Germany. For the past 20 years, both the port of Sohar and the industrial cluster area have been owned 50 percent each by the Omani government and the port of Rotterdam. According to OECD figures, the port and cluster handle 60 million tonnes of goods annually. Its origins date back to the third century AD under the name “Majan”. At that time, Omanis sailed from there to China.
The location and industrial site could give Sohar an advantage in future hydrogen exports. Oman’s largest port, Salalah in the south, is primarily geared towards general cargo and container transport. The relatively new port in Duqm is also located further south in the country.
About Abdullah Al-Abri
Dr. Abdullah Sulaiman Al-Abri has been Vice President for Sustainability at Sohar Port and Freezone since May 2024. The petroleum engineer holds a doctorate and represented Oman at international organizations such as the International Energy Agency (IEA) and the Organisation for Economic Co-operation and Development (OECD). He was previously Director of Energy Renewal at Petroleum Development Oman (PDO) and an advisor to the IEA. With his expertise, Al-Abri has shaped the promotion of the hydrogen economy in Oman and the development of energy transition strategies in oil-producing countries.