Oman and Spain have agreed to explore a green methanol production and bunkering project in Dhofar in Oman under a new agreement.

The MoU was signed between Oman’s Transport and Communications Ministry and a consortium comprising HIF EMEA, ACCIONA & Nordex Green Hydrogen and Al MEERA Investment, the Oman Foreign Ministry said in a press release on Tuesday.

The partners will assess producing green methanol from renewable energy and captured carbon for marine fuel and export.

Dhofar is the southernmost governorate of Oman. It lies on the Arabian Sea along key Indian Ocean shipping routes, giving it strategic value for bunkering and fuel exports.

The agreement supports Oman’s carbon neutrality goals and its plan to build a regional green fuels hub.

It was signed during His Majesty Sultan Haitham bin Tarik‘s state visit to Spain, alongside an LNG cooperation MoU between Oman LNG and Spain’s Naturgy.