Big Oil snaps up lead role in another massive 25GW green hydrogen project

InterContinental Energy – a key player in the two biggest green hydrogen project proposals in Australia – has brought in global oil giant Shell to take the lead in another massive 25GW project in Oman.

The decision to bring in Shell as lead operating partner in the Green Energy Oman (GEO) consortium comes just a few months after Intercontinental and other shareholders brought in another global oil giant BP to take the lead in the 26GW project now known as the Australian Renewable Energy Hub in the Pilbara.

The Singapore-based Intercontinental – backed by the government’s state owned investment fund – has become a key player in a number of mega-scale green hydrogen projects, and its interests also extend to the 50GW Western Green Energy Hub in southern Western Australia, and another big project in Saudi Arabia.

The Australian-based CWP is a partner in both the WA-based projects, while Macquarie Group is also a shareholder in the Australian Renewable Energy Hub.

The Oman project shows there is stiff competition for Australia in grabbing a share of the global green hydrogen market. It also shows the growing influence of the big oil majors in these projects, reflecting their deep pockets, their know-how on huge projects, technical expertise and growing green energy ambitions.

GEO was initiated in 2018 and targets 1.8 million tonnes of green hydrogen production, or 8 million tonnes of green ammonia, a year. That’s about the same output estimated for AREH.

Shell will take a 35 per cent stake in GEO, with Intercontinental; OQ, the Sultanate of Oman’s global integrated energy company; and EnerTech, a Kuwaiti state-owned company focused on clean energy investment and development, sharing the rest.

“InterContinental Energy is pleased to welcome Shell as the future Operating Partner in Green Energy Oman (GEO),” said Tony Nieman, the head of Middle East operations for Intercontinental Energy.

“The deep experience and expertise that Shell provides is a major step towards bringing our 25-gigawatt mega project to the next phase.”

The consortium says it has deployed extensive solar and wind monitoring equipment and now has three years of data. A concept feasibility study has been done by Australian consultancy Worley, energy production assessments by DNV, and an EIS by HMR Consultants.