MUSCAT - HIF Global, a leading international producer of carbon-neutral e-fuels, 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 the Sultanate of Oman.

As a first step in advancing this initiative, a Memorandum of Understanding (MoU) was signed between the consortium and Oman’s Ministry of Transport, Communications and Information Technology in Spain earlier this week. The signing took place against the backdrop of the state visit of His Majesty Sultan Haitham bin Tarik to Spain.

Also participating in the consortium is Acciona Nordex Green Hydrogen, a partnership known for developing large-scale green hydrogen and e-fuel projects powered by renewable wind and solar energy. It combines Acciona’s expertise in infrastructure and renewables with Nordex’s wind technology to produce sustainable, low-carbon fuels for global markets. Local Omani firm Al Meera Investments is also a partner.

Announcing the MoU signing in a post, HIF Global stated: “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. Let’s keep pushing the energy transition forward.”

Headquartered in Houston, United States, HIF Global is renowned for scaling the production of synthetic fuels made from green hydrogen and captured carbon dioxide. HIF (short for Highly Innovative Fuels) currently has major projects in operation in Chile, the United States, Australia, and Uruguay. It converts renewable electricity into hydrogen via electrolysis and combines it with CO₂ to create e-methanol, which can be 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 MoU, the parties will collaborate to evaluate the technical, regulatory, and commercial conditions necessary to develop a large-scale e-methanol project that leverages Oman’s abundant renewable energy potential and coastal infrastructure. The consortium will undertake feasibility and techno-economic studies to assess opportunities for e-methanol production, bunkering, and export in Dhofar Governorate — integrating wind and solar power for green hydrogen generation, capturing CO₂ from industrial and biogenic sources, and converting it downstream into e-methanol. The Ministry, for its part, will coordinate with relevant Omani 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.

In December 2022, OQ Alternative Energy (OQAE) – part of the Omani global energy group OQ – signed a Memorandum of Cooperation (MoC) with Asyad Group, A.P. Moller-Maersk, and Sumitomo Corporation Middle East FZE (SCME) to jointly study the feasibility of establishing green-fuel bunkering operations in Oman, particularly at the ports of Duqm and Salalah. The parties agreed to explore the commercial and technical viability of e-ammonia and/or e-methanol bunkering operations at Omani ports and for potential export markets.

More recently, the Port of Salalah entered into a strategic lease agreement with local Omani firm Horizon Energy Salalah to create a biofuel storage hub, further boosting the country’s renewable-energy logistics capabilities.

2025 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (Syndigate.info).