Saudi Arabia's ACWA Power, Oman's state-owned energy company OQ and US-based Air Products signed a joint development agreement (JDA) to set up the H2Oman Project in Dhofar to produce green hydrogen.

The JDA signing follows a memorandum of understanding signed in December 2021 to produce 1 million tonnes of green ammonia annually.

A joint statement issued by the companies on Thursday said the multibillion-dollar project planned for Oman's Salalah Free Zone includes the integration of renewable power from solar, wind and storage; production of hydrogen by electrolysis; production of nitrogen by air separation; and production of green ammonia. 

The statement didn’t disclose the potential value of the project.

The green hydrogen-based ammonia production facility is expected to be equally owned by the project partners. 

ACWA Power, backed by Saudi Arabia's sovereign wealth fund PIF, along with Air Products is developing a $5 billion green hydrogen-based ammonia production facility powered by renewable energy in the futuristic, zero-carbon city Neom.

(Writing by Brinda Darasha; editing by Daniel Luiz)