Japan’s Sumitomo Corp and Oman’s ARA Petroleum have launched a hydrogen hybrid project feasibility study in the Middle East nation, the Japanese company said on January 22. 

Sumitomo said that hydrogen can be produced utilising associated gas extracted as a by-product of  oil production. The project aims to establish a hydrogen supply chain based on the local production and consumption model at one of ARA's upstream sites, with a target to start operations in 2023, Sumitomo added. 

The project aims to produce about 300-400 metric tons/year of hydrogen from associated flare gas generated at the site which will be used to power fuel-cell vehicles that ARA plans to introduce at the site. Also, the captured CO₂ will be used in local industries.  The two companies had signed an MoU in March last year. 

In addition, 20-MW solar power generation panels will be installed and used as a power source for the site and hydrogen production facilities, Sumitomo said.