Wood (LON: WG) has been awarded pre-front-end engineering and design (pre-FEED) work on Oman’s Blue Horizons hydrogen project by the UK supermajor Shell (LON: SHEL).
This comes as Wood’s value dropped by more than £477m in one day when Middle Eastern firm Sidara stepped away from a takeover bid.
After completing due diligence work Sidara said it was backing down “in light of rising geopolitical risks and financial market uncertainty”.
Wood will be utilising its teams in the United Kingdom, Ireland, Italy, India and Oman to deliver this contract, which is expected to be completed in 2025.
The Blue Horizons project will produce low carbon blue hydrogen and ammonia and will capture and store carbon dioxide from production.
The development is expected to be the first large-scale project of its kind in Oman and will distribute to local and international markets.
Wood will use its expertise in carbon capture and hydrogen to design the integrated blue hydrogen and ammonia production facility, marine facilities including ammonia storage, 200 kilometre pipeline and CO2 injection facility, the firm said.
Giuseppe Zuccaro, president of process and chemicals at Wood, commented: “The innovative Blue Horizons project will serve as a catalyst to Oman’s adoption of zero-carbon fuels. We are delighted to work with Shell to deliver this pre-FEED package, combining our in-country capability and global subject matter expertise to drive progress on this exciting initiative.”
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