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PDO exploring solar-to-hydrogen opportunities

Majority government-owned Petroleum Development Oman (PDO), the largest producer of oil and gas in the Sultanate, is weighing opportunities in solar-to-hydrogen conversion — part of an array of options it is keenly exploring in line with its pursuit of renewable energy resources, as well as carbon mitigation technologies.

Also known as solar-hydrogen, the process involves the use of electricity generated by solar photovoltaic panels to power an electrolyser, a device that splits water (H2O) into its elemental components hydrogen (H2) and oxygen (O2). While the oxygen is released into the air, the hydrogen is pumped into storage tanks or diverted for use in a wide number of petrochemical, industrial and refining applications. Hydrogen can be used in fuel cells.

According to PDO Managing Director Raoul Restucci, solar-to-hydrogen conversion has promising potential both in the upstream and downstream segments of the Oil & Gas business.

“There are a number of opportunities in the petrochemical space, in the downstream space, in the Enhanced Oil Recovery (EOR) space that we are looking into — how do we take the opportunity to deliver hydrogen to electrolysers in solar power at increasingly more efficient cost and for direct usage that we will have in our industry or in the downstream space.” “We are putting a lot of emphasis on studying solar-to-hydrogen opportunities in that space based on the capabilities that we have, and how do we move into the next position to maximise these opportunities,” he further noted.

The reference to solar-to-hydrogen came in the context of PDO’s ambitions to evolve into a ‘fully-fledged energy development company’ that goes well beyond its current focus on hydrocarbon exploration, development and production.

The transition, first unveiled about a year ago, envisions PDO’s diversification into, among other areas, solar based renewable energy development, energy management, Oil & Gas consultancy services, and water management.

In comments to the Observer, Restucci said the strategy has since delivered a string of successes — some small-scale, other large-scale — as the company seeks to ensure the sustainability of its business over the long-term.

Successful initiatives include efforts to make PDO’s Bait Al Fahal head office in Muscat self-sufficient in its power needs via the installation of solar PV panels atop car parks. Solar lighting and water heating is also a feature at its Ras Al Hamra residential development in the city.

Ten-kilowatt power systems installed at new villas in the complex now almost fully meet the electricity needs of households during peak hours, he said.

PDO’s signature renewables-based venture — the 1 gigawatt Miraah project under development at its Amal oilfield — is also progressing well, said Restucci. “We will have 300 megawatts installed by early next year, and commissioned as well,” he said.

Also noteworthy in this regard is the company’s recent award of a contract for the construction of a 100MW solar PV Independent Power Project (IPP) at the Amin field.

The company is also weighing an expanding portfolio of opportunities in its drive towards energy efficiency and sustainability, the Managing Director said. “At the moment, we are working to identify what we can do in terms of monetising some of the gas flaring. We are turning some gas flaring into power in terms of greenhouse gas management. We are also progressing with the next renewable opportunities.”

Restucci also welcomed the recent announcement by GlassPoint Solar — the technology provider behind the landmark Miraah project — for the establishment of a similar scheme for Oxy Oman’s Mukhaizna heavy oilfield. Sized at a mammoth 2 gigawatts, the Mukhaizna venture will be around twice the capacity of the Miraah project. “We are really excited about this announcement,” said Restucci. “Proving the economics of this technology, the sustainability and reliability aspects as well, in a desert environment of a Miraah-type solution have been enabler for the projects and for Oman to build that competitive advantage to the next level.” PDO, he said, would support the new venture by sharing its learnings and best practices with Oxy in the development of its solar farm. “The new project will make the focus on the next phase of technology even better, will make the critical mass get larger, it will help us build the In-Country Value (ICV) proposition to expand the supply chain, to create more jobs associated with that — which is an area we focus a lot on. So it’s a win-win for all parties.” “Even if we don’t have share in that project, it will help us in new technology development; it will help us in work we are doing with GlassPoint on storage — a huge resource that is available during the day, but not at night. Can we turn the operation during the day into a 24×7 operation, and obviously storage will have a huge impact in enabling a more sustainable lower cost and more efficient way of distributing that,” he added.
  • Petroleum Development Oman
  • Solar to Hydrogen
  • Oil and Gas Business
  • Oman
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