MUSCAT: The Port of Salalah has signed a strategic lease agreement with Horizon Energy Salalah to establish a Bio-Fuel Storage Hub, marking a new milestone in Oman’s renewable-energy logistics and reinforcing Salalah’s role on the main East–West shipping lane.
The facility will expand regional capacity for storing and distributing renewable fuels and underpins the Sultanate’s push to supply cleaner bunker options for global shipping. The port said the project advances Oman Vision 2040 goals and complements ongoing efforts to position Salalah as a diversified green-energy gateway.
The bio-fuel hub follows the award of two new green-hydrogen blocks in Dhofar to international consortia (EDF Group–J-POWER–Yamna; Actis–Fortescue). Together, the winners have committed to produce an aggregate 378,000 tonnes of renewable hydrogen per year by 2030, with part of the output to be exported via the Port of Salalah. An earlier (Dec 2023) award went to SalalaH2—Marubeni, OQ Alternative Energy, Dutco and Samsung C&T—also targeting downstream conversion in Salalah Free Zone and exports through the port.
Taken together, the projects establish Salalah as Oman’s second hub for green-molecule exports, complementing Duqm, which anchors exports from six awarded projects in Al Wusta Governorate.
Port leadership says the gateway is coordinating with Hydrom and government entities to align terminal design and rollout with developers’ needs. “Port of Salalah will play a pivotal role as the gateway for green-molecule exports… We remain committed to initiating groundwork as swiftly as possible,” said CEO Keld Mosgaard Christensen in remarks to the Observer. He added there is scope to collaborate with strategic customers, notably A.P. Moller–Maersk, on green-fuel logistics as the port scales its clean-energy portfolio.
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