Oman to host major E-Methanol project

Short for Highly Innovative Fuels (HIF) Global, a leading international producer of carbon-neutral e-fuels based in Houston, Texas, is heading a consortium of global and local partners to explore the development of an e-methanol project alongside a bunkering hub at Salalah in the south of Oman.

The project was formalized this week with the signing of a Memorandum of Understanding (MoU) in Spain earlier this week during the state visit of Sultan Haitham bin Tarik.

The consortium includes Acciona Nordex Green Hydrogen, a partnership that specializes in large-scale green hydrogen and e-fuel projects powered by renewable wind and solar energy.

Acciona’s extensive experience in infrastructure and renewables, coupled with Nordex’s advanced wind technology, aim to produce sustainable, low-carbon fuels to meet the demands of global markets. Joining this collaboration is Al Meera Investments, a local Omani firm.

Announcing the MoU signing in a post, HIF Global stated that the agreement establishes a public-private partnership to explore the development of a large-scale e-methanol production and bunkering hub in the Dhofar region of Oman, supporting the decarbonization of the global shipping sector.

“Together, we’re taking another step toward a cleaner world powered by e-fuels,” the company stated in its announcement. “Let’s keep pushing the energy transition forward.”

HIF currently has major projects in operation in Chile, the United States, Australia, and Uruguay. By converting renewable electricity into hydrogen via electrolysis and combining it with CO2, HIF produces e-methanol, which can be further refined into e-gasoline, e-diesel, or sustainable aviation fuel.

Supported by investors such as Porsche and Baker Hughes, HIF Global aims to decarbonize sectors such as transport and aviation by providing drop-in, low-carbon fuels compatible with existing engines and infrastructure.

Under the terms of the MoU, the partners will collaborate to assess the technical, regulatory, and commercial conditions required for the large-scale production of e-methanol in Oman.

The project will capitalize on the country’s abundant renewable energy resources and its strategic coastal infrastructure. The consortium will conduct feasibility and techno-economic studies to evaluate the potential for e-methanol production, bunkering, and export from the Dhofar Governorate.

This will involve the integration of wind and solar power to generate green hydrogen, as well as the capture of CO2 from both industrial and biogenic sources, which will be converted into e-methanol.

The government of Oman, for its part, will coordinate with relevant authorities to support regulatory alignment, land allocation, and potential incentive frameworks for the project.

Notably, the proposed e-methanol project is the latest in a series of strategic initiatives aimed at positioning Salalah as a regional hub for low-carbon fuels, targeted primarily at the maritime shipping industry.