Asyad Group and partners looking to set up low-carbon fuel bunkering hub in Oman

September 25, 2024, by Ajsa Habibic

Oman’s logistics provider Asyad Group has signed a joint study agreement with OQ Alternative Energy and Sumitomo Corporation Middle East FZE to look into the potential of establishing Oman as a global low-carbon fuel bunkering hub.

The agreement is said to mark a ‘pioneering step’ in promoting sustainable shipping practices to meet global decarbonization goals in the maritime industry and leveraging Oman’s renewable resources on a global scale.

As part of the joint study, Asyad has issued a request for information (RFI) to leading shipping companies to drive the adoption of global green logistic solutions in Oman. The insights derived from the RFI will represent the cornerstone for the study and will be crucial in guiding the development of a low-carbon bunkering infrastructure in Oman.

A feasibility study will also be conducted to assess key factors including the levelized costs of delivered low-carbon fuels, the infrastructure required to support such operations, and the alignment with global regulatory standards for sustainable fuels.

Early findings suggest that Oman possesses a geographical advantage and renewable energy resources that could position the country as a frontrunner in providing competitively priced low-carbon fuels to the global shipping industry.

In line with Oman’s Vision 2040 and its sustainable energy strategy, Asyad Group and its partners aim to leverage these advantages to offer low-carbon fuels such as e-methanol and ammonia at competitive prices.

Current bunkering facilities at the Ports of Salalah and Duqm are earmarked as strategic sites for potential retrofitting to support low-carbon fuel operations.

At the end of 2022, Danish container shipping major Maersk signed a memorandum of cooperation (MoC) with OQ Alternative Energy, Asyad Group and Japan’s Sumitomo to undertake a feasibility study on the supply and bunkering of green fuels in Oman’s ports of Duqm and Salalah, most notably green ammonia and green methanol.