Oman will launch its first wind turbine manufacturing project at the special economic zone (SEZ) of Duqm. The client is a subsidiary of Oman’s integrated energy powerhouse, the OQ Group. The project represents a cornerstone in the Sultanate of Oman’s move towards clean energy, local industrialisation and long-term sustainability.
Project To Target Both Domestic And Regional Demand
The project reflects a fast-track approach to localising wind turbine manufacturing to cater for the domestic market and regional demand. Oman’s requirement for wind turbines to support the country’s energy transition is estimated in the thousands over the next decades. The transition spans grid-connected clean energy generation and incorporates the ambitious green hydrogen sector. Phase 1 will be developed on a 550,000 square metre site in the SEZ with investment of OMR 70 million (USD 1.82 billion). Moreover, the wind turbine manufacturing capacity of this phase is projected at around 1,100 MW per year. Accordingly, it focusses on the production of two turbine models — the 6.25 MW and the 9.6 MW. Technology for the project will be licensed by Shanghai Electric Group, a pioneer in China’s clean energy equipment manufacturing sector.
Further Investment In Renewable Energy Projects Planned
The first recipients of the turbines are grid connected, wind-based Independent Power Projects planned in Al Duqm, Mahout and Sadah. These projects will be developed by international developers (supported by local consortium partners) and selected through a competitive tender. As a result, they will be managed by Nama Power and Water Procurement (Nama PWP). Accordingly, OQ Alternative Energy (OQAE) – a wholly-owned subsidiary of OQ Group – has been assured a stake in them. This stake commitment, covers equity share of up to 25% in all future renewable energy projects procured by Nama PWP. Accordingly, the wind projects planned in Al Duqm, Mahout and Sadah, OQAE’s investment will correspond to an equivalent stake in the respective project companies.
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