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Monday, 18 September 2023

Belgium’s Fluxys is acquiring a 4.9% stake in OQ Gas Network as it prepares for green hydrogen exports

Belgium investing in Oman’s hydrogen network to prepare for export: Belgian utilities company Fluxys is acquiring a 4.9% stake in state-owned transmission system operator OQ Gas Network (OQGN) and has signed an MoU to explore partnerships in Oman’s hydrogen and CO2 infrastructure, according to a statement. Fluxy’s announcement comes in response to an invitation by OQGN to become an anchor investor in the coming IPO process on the Muscat stock exchange. The acquisition is part of Fluxys’ strategy to develop low-carbon hydrogen and CO2 routes to import into Belgium and Europe, the statement added.

OQGN is working with other players to build hydrogen infrastructure: OQGN is working with Oman’s hydrogen development entity Hydrom on a common-use infrastructure scheme to accelerate the development of the necessary infrastructure for previously signed hydrogen projects, Hydrom Managing Director Abdulaziz Al Shidhani told The Energy Year in an interview in July. Nama Group for Electricity and Water and other utility companies are also working on the common infrastructure scheme. The infrastructure plan is being fast-tracked for the five projects it has already signed in Al Wusta and for another five to six projects targeted for signing for the Dhofar region, Al Shidhani said at the time. He estimated a timeline of six to seven years to construct the common infrastructure.

Countries with an established gas network could have an advantage in hydrogen production and transport: “Hydrogen could be blended into existing natural gas networks, with the highest potential in multifamily and commercial buildings,” according to the International Energy Agency (IEA). Current research shows that hydrogen can be safely injected into the gas grid up to 5-10% volume, and is expected to reach 20% by the end of the decade with continued investment in research and development. However, regulations on hydrogen blending today are based on natural gas specifications or the tolerance of the most sensitive piece of equipment on the grid, therefore only allowing no more than 2% hydrogen blending in most countries, according to the IEA. A gas supply that includes low-carbon hydrogen would lower CO2 emissions and help scale up production of hydrogen.

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