Latest news with #Riyah-1
Observer
09-06-2025
- Business
- Observer
OQAE begins operational phase of clean energy project pipeline
MUSCAT: More than five years after its establishment as the clean energy investment arm of OQ Group, OQ Alternative Energy (OQAE) is set to formally commence the operational phase of its pivotal mandate. That phase will begin next year, when three mid-scale renewable energy projects—dubbed Riyah-1, Riyah-2 (both wind-based Independent Power Projects, or IPPs), and the North Oman Solar IPP—come online over the course of the year. Their launch marks OQAE's official entry into the operational phase of a portfolio that aims to deliver upwards of 7 GW of new renewable energy capacity through to 2030. The significance of this milestone in OQAE's evolution as the National Champion for Renewable Energy in Oman was emphasized in an exclusive interview highlighting how the Riyah-1, Riyah-2, and North Oman Solar projects align with OQAE's overarching mandate. That mandate rests on two main pillars: The first is the development of renewable energy and green hydrogen projects; the second is ensuring holistic development across the entire value chain and ecosystem, which includes project execution, competency development, supply chain investment, and strategic planning through to implementation. Integral to these objectives is the aim of attracting foreign direct investment (FDI) and advanced technology know-how into Oman. As announced last month, a joint venture comprising OQAE (51%) and TotalEnergies (49%) will develop the three projects at designated sites within the Block 6 concession of Petroleum Development Oman (PDO). The renewable electricity generated will be supplied to PDO under long-term Power Purchase Agreements (PPAs) at agreed tariffs. The OQAE–TotalEnergies JV will continue to own and operate the projects for the duration of the PPAs. According to the officials, partnering with a renowned integrated energy company like TotalEnergies aligns with OQ Group's strategy of leveraging the extensive experience and capabilities of global industry leaders. 'Unlike our well-established peers such as OQ Exploration & Production and OQ Refineries & Petroleum Industries, OQAE is just commencing its operational journey,' one executive noted. 'As a first step, our partnership spans not only Riyah-1, Riyah-2, and North Oman Solar, but also the 300 MW solar PV project that will contribute to the decarbonisation of the Marsa LNG bunkering project under construction at Sohar Port.' Meanwhile, Huadong Engineering Corporation—a subsidiary of Chinese contracting giant PowerChina—has already begun work on the three PDO-linked renewable energy projects. An initial batch of eight wind turbines is expected to arrive at the Port of Duqm for Riyah-1 in October. The supplier, Goldwind, a leading Chinese manufacturer, was awarded the contract to supply 36 turbines (18 for each site), each with a capacity of 117 MW, for the two wind farms. Solar PV panels for the North Oman Solar project will be supplied by Longi, a global leader in solar technology. More than 200,000 bifacial N-type panels, with a generation capacity of 128 MW DC, will be installed across a 3.5 km² site at Saih Nihayda in central Oman. The commercial operation dates are targeted for Q2 2026 for North Oman Solar and Q4 2026 for the wind farms. In addition to being the first clean energy projects to progress from concept to implementation, Riyah-1, Riyah-2, and North Oman Solar are also set to create a number of firsts for OQAE. They are the first to achieve Final Investment Decision (FID) and financial closure; the first wind projects to be financed locally by Omani banks—Bank Muscat and Ahli Bank; the first Wind IPPs in the world to exclusively power oil and gas projects; the first clean energy projects in which both the developers and end customers are from the oil and gas sector; and the first collaboration between oil and gas companies to advance the energy transition.
Observer
19-05-2025
- Business
- Observer
‘Climate-adapted' turbines for PDO wind farms
MUSCAT, MAY 19 Chinese multinational wind turbine manufacturer Goldwind is set to make its debut in Oman's sizable wind energy space with a contract to supply wind turbines for a pair of wind farms with a combined capacity of 234 MW. The partnership of Omani state-owned OQ Alternative Energy (OQAE) [with a 51 per cent shareholding] and French integrated multi-energy group TotalEnergies (49 per cent) is developing the two wind farms in the southern part of the Block 6 concession of Petroleum Development Oman (PDO), currently the largest producer of hydrocarbons in Oman. Output from the two wind farms, dubbed Riyah-1 and Riyah-2, will be supplied to PDO under long-term power purchase agreements. Agreements green-lighting the start of work on these wind farms, among other initiatives, were signed last week. PowerChina Huadong Engineering (PowerChina) was named the Engineering, Procurement and Construction (EPC) contractor. For Beijing-headquartered Goldwind, which was ranked the largest supplier of wind turbines to the global market in 2024, the Oman contracts represent a further expansion into the lucrative Middle East market. 'We are honoured to announce that Goldwind, as the wind turbine supplier for the 234 MW Riyah 1&2 wind projects, is partnering with OQ Alternative Energy (OQAE) and TotalEnergies to deliver Oman's largest wind power initiative—marking a historic step in the nation's decarbonization journey. It also represents Goldwind's entry into its global market, reinforcing our commitment to worldwide sustainable energy solutions,' the Chinese firm stated in a post. According to Goldwind, the two wind farms will be equipped with the company's 'climate-adapted turbines' designed to displace 740,000 tonnes of CO₂ annually, which is equivalent to removing 160,000 cars from roads. 'These projects will supply green electricity to the Petroleum Development Oman (PDO) electricity transmission network through long- term power purchase agreements. This represents a pioneering model of integrating renewable energy into the traditional fossil fuel sector, demonstrating Oman's strong commitment to decarbonizing its oil and gas sector,' it noted. Ranked among the Top 5 wind turbine manufacturers in China, Goldwind is credited with delivering more than 53,000 wind turbines worldwide as of the end of Q3 2024, boasting a global cumulative installed capacity exceeding 128GW. According to the Global Wind Energy Council's (GWEC) annual Supply Side Data report, Goldwind remained the world's leading turbine supplier, installing more than 20 GW in 2024 – a new record. As of the end of Q1 2025, the company's total order backlog was 51.09GW, which includes 48.6 GW of external orders. Oman, with a requirement of hundreds of wind turbines to meet its target of securing at least 30 per cent of its energy needs from renewables, represents a key market for manufacturers like Goldwind. Additionally, an estimated 2,000 wind turbines will also be required to support Oman's green hydrogen productions targets by 2030.
Muscat Daily
12-05-2025
- Business
- Muscat Daily
OQ inks renewable energy pacts worth $2bn
Muscat – Global energy investment group OQ signed 13 renewable energy agreements worth over US$2bn during Oman Sustainability Week 2025 on Monday, marking a significant step in its efforts to support the sultanate's net zero goals for 2050. The agreements, signed by Ashraf bin Hamad al Mamari, CEO of OQ Group, and Najla Zuhair al Jamali, CEO of OQ Alternative Energy (OQAE), involve project development partnerships, financing arrangements with local banks and equipment supply contracts to accelerate clean energy projects. 'These agreements mark a strategic advancement in OQ's renewable energy leadership and reflect our unwavering support for Oman's 2050 net zero goals,' Mamari said. 'Recognising clean and sustainable sources as the future of energy, we're collaborating with national and international partners to establish new investment opportunities in clean energy infrastructure.' The deals cover major projects including high-capacity solar and wind installations in Suhar and Duqm, such as the Riyah-1 and Riyah-2 plants and the North Oman Solar Project. These facilities will supply clean power to the national grid and oil and gas production sites under long-term offtake agreements, significantly reducing carbon emissions. As part of its broader decarbonisation strategy, OQ also signed a deal with Japan's Mitsubishi Heavy Industries to conduct pre-feasibility studies for carbon capture technologies across its assets in Oman. The partnership will assess the full CO₂ value cha-in, from capture and transport to utilisation and storage, to build commercially viable business cases. The agreements extend to major industrial clients including Jindal, Vale Oman, Oxy and United Solar Polysilicon, ensuring secure renewable power supply as they transition to more sustainable operations. The deals also emphasise industrial localisation, with a focus on boosting in-country value through partnerships like one with Voltamp for local transformer manufacturing, supporting Oman's goal to become a regional clean energy hub. OQAE's Najla said, 'These agreements operationalise our strategy to promote renewable energy and accelerate the transition to a low-emission economy. These partnerships demonstrate international confidence in OQ's capabilities and investment framework as we expand our portfolio of high-quality projects.'
