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In line with global trends aimed at promoting marine sustainability and reducing carbon emissions, the Ministry of Transport, Communications, and Information Technology, along with its strategic partners in Omani ports, is working on strategic plans to transition to green mobility and achieve carbon neutrality in the Sultanate by 2050. Sohar Port has announced the receipt of its first shipment of B20 fuel (a blend of 80% diesel and 20% biofuel) to begin the pilot phase of using biofuel in its marine tug operations, starting with the tugboat “Sohar,” and then expanding the project to include all tugs by next month in collaboration with Svitzer, Waqud, and Hormuz Marine.

On this occasion, Emile Hoogsteden, CEO of Sohar Port, stated: “Marine operations are the main contributor to greenhouse gas emissions at Sohar Port, which have increased with our growth due to fuel consumption for our tugboat operations. The use of biofuel will significantly reduce emission levels, supporting the country’s efforts to achieve carbon neutrality by 2050. By intensifying our efforts with partners who share our vision and approach, this project has become an exemplary model in the region and beyond.”

Engineer Abdullah bin Ali al Busaidi, an expert on the carbon neutrality team at the Ministry of Transport, Communications, and Information Technology, confirmed that the ministry is currently collaborating with various government entities on the 18 carbon lab initiatives. In the area of green ports, the ministry has laid out a clear roadmap that includes several projects to reduce emissions, convert equipment to operate on electric power and smart systems, connect ships to electrical power, and decarbonize the port sector. The ministry is also working on establishing a regional center for supplying ships with clean fuel. He emphasized that the ministry, in collaboration with entities involved in the biofuel initiative such as the Environment Authority, the Ministry of Commerce, Industry and Investment Promotion, and the Ministry of Economy, has reached some important outcomes. Additionally, the private sector has contributed to resolving some project challenges, the most significant being the price difference between biofuel and regular fuel.

Al Busaidi added that the private sector has identified primary materials for biofuel production, focusing on used cooking oils from restaurants and commercial outlets. Sultan Qaboos University, in collaboration with Petroleum Development Oman, has made significant efforts to innovate a method using date pits as a primary material in biofuel, which has already been used in one of Mwasalat’s buses.

Deniz Kirdar True, General Manager of Svitzer in Asia, the Middle East, and Africa, commented: “We are proud to collaborate with Sohar Port on this important initiative.” She added, “Svitzer has been providing safe and reliable marine services to customers at Sohar Port for years, and in this partnership, we found an ally who shares our ambitious goals for decarbonization and is ready to do things differently and innovatively. This pioneering project is a unique example of leveraging our global expertise to share with our partners in Oman on their journey towards reducing environmental impacts.”

Suleiman al Hadhrami, CEO of Hormuz Marine, stated: “Working with Sohar Port to supply the first biofuel for ships in Oman is a pivotal step towards emissions reduction and sustainability in the maritime industry. While marine fuel remains necessary in the short term, the gradual increase in biofuel use will result in a significant reduction in harmful emissions. This shift aligns with global efforts to combat climate change and demonstrates a commitment to a cleaner, more sustainable future in maritime shipping.”

The company has set a goal to reduce greenhouse gas emissions from its operations by 17%, in line with the Sultanate’s aim to achieve carbon neutrality by 2050. Biofuel, derived from living organisms whether plant or animal, is one of the renewable energy sources. In this project, biofuel is locally produced from cooking oil and is considered an environmentally friendly alternative, as it reduces harmful emissions when burned compared to traditional fossil fuels.

The project embodies the strategy of Sohar Port and Freezone to enhance the circular economy and support economic development in the Sultanate of Oman by maintaining the sustainability of its natural resources in line with the goals set in Oman Vision 2040.

Source;https://www.omansustainabilityweek.com/sohar-port-welcomes-first-shipment-of-biofuel

Global investment in clean energy technology and infrastructure is set to hit $2 trillion this year, twice the amount going into fossil fuels, an International Energy Agency report showed.

Total energy investment is expected to exceed $3 trillion for the first time in 2024, the IEA said in its annual World Energy Investment report.

Some $2 trillion is set to go to clean technologies – including renewables, electric vehicles, nuclear power, grids, storage, low-emissions fuels, efficiency improvements and heat pumps – with the rest directed towards gas, oil and coal.

Combined investment in renewable power and grids overtook the amount spent on fossil fuels for the first time in 2023.

“For every dollar going to fossil fuels today, almost two dollars are invested in clean energy,” said IEA Executive Director Fatih Birol.

“The rise in clean energy spending is underpinned by strong economics, continued cost reductions and by considerations of energy security,” he added.

China is set to account for the largest share of clean energy investment in 2024 with an estimated $675 billion, while Europe is set to account for $370 billion and the United States $315 billion.

More spending is focused on solar photovoltaic (PV) than any other electricity generation technology with investment set to grow to $500 billion in 2024 due to falling solar module prices.

Global upstream oil and gas investment is expected to increase by 7 per cent in 2024 to $570 billion, following a similar rise in 2023. This was mostly led by national oil companies in the Middle East and Asia, the report said.

However, there are still shortfalls in energy investment in parts of the world such as emerging economies and developing economies outside China, it added.

Source:https://www.omansustainabilityweek.com/iea-expects-global-clean-energy-investment-to-hit-2-trillion-in-2024

Last week’s award of two new green hydrogen blocks in Dhofar Governorate, to a pair of international consortiums, has firmed up a leading role for the Port of Salalah as an important gateway for green molecule exports from the Sultanate of Oman.

The winning consortiums were: (a) EDF Group, J-POWER and Yamna, and (b) Actis and Fortescue. Both have committed to producing an aggregate of 378,000 tonnes of renewable hydrogen per annum by 2030, with part of the output targeted for export to international markets via the Port of Salalah.

Earlier in December 2023, Hydrom – the orchestrator of the green hydrogen industry in Oman – signed a similar agreement with the SalalaH2 consortium for the development of a renewable hydrogen project in Dhofar Governorate. SalalaH2 comprises Marubeni Corporation, OQ Alternative Energy, Dutco and Samsung C&T Corporation.

All three ventures are due to set up their respective downstream components in Salalah Free Zone, and export part of their production in the form of hydrogen derivatives, via the adjoining Salalah Port. In effect, Salalah Port is set to become the second hub for green molecule exports, complementing the Port of Duqm, which is the designated hub for exports from hydrogen projects – five in all to date – located in Al Wusta Governorate.

In remarks to the Observer, Salalah Port CEO Keld Mosgaard Christensen, said the port is committed to playing its part in the crystallisation of Oman’s green hydrogen ambitions.

“We are delighted that Port of Salalah will play a pivotal role as the gateway for green molecules exports with the recent announcement of two new projects in Salalah,” said the CEO. “This marks a significant milestone for Oman, and we take pride in our contribution towards fostering a sustainable planet. These developments not only benefit the nation but also propel us closer to our sustainability goals as a port. We remain committed to furthering our efforts in this direction and look forward to the positive impact these projects will have on the global trade, environment and community.”

In anticipation of the project awards, Salalah Port has working closely with various government agencies to ensure that the requisite terminal infrastructure is designed and rolled out in a timely and cost-effective manner.

“We have been diligently collaborating with Hydrom throughout the process, and now with the agreements finalized, our focus shifts to working closely with the awarded companies to understand their specific needs. This collaboration will enable us to tailor our infrastructure to serve as a terminal operator effectively. While timelines will be influenced by various factors, including regulatory requirements and project complexities, rest assured, we are committed to initiating groundwork as swiftly as possible,” said Christensen.

Furthermore, as the port gears up to shoulder its new role, there are potential opportunities for collaboration with key stakeholders, notably AP Moller Maersk, which is spearheading green fuel conversion initiatives for its fleet, according to the CEO.

“As our largest customer and a leader in sustainable practices, Maersk’s expertise and capabilities can undoubtedly support Salalah Port in our green initiatives. Given Salalah’s strategic position as one of their key hubs, there is clear potential to leverage their resources and knowledge. As the Port of Salalah, we are fully committed to facilitating and nurturing this collaboration for the mutual benefit of the port and Oman as a whole,” he added.

Source:https://omanpetroleumandenergyshow.com/News/salalah-port-gears-up-for-new-role-as-omans-hydrogen-export-hub