Air Canada and Oman LNG to Build 110,000-Ton Synthetic Methane Plant Green Hydrogen Project Set for 2029 Launch

Air Canada has signed a preliminary contract with Oman LNG to construct a synthetic methane plant in Oman, targeting an annual output of 110,000 tons, making it one of the world’s largest facilities of its kind. The initial construction phase is set to begin after 2030, with an earlier demonstration plant breaking ground in 2026 and set to enter operation by 2029—the first such facility in Oman.

The demonstration project will integrate seawater desalination and water electrolysis to produce hydrogen using renewable energy sources like solar and wind. This green hydrogen will react with captured CO₂ to synthesize methane, which will then be liquefied and exported.

Air Canada will provide the complete suite of technologies, including desalination, electrolysis, and methanation equipment. Oman LNG has praised Air Canada’s expertise in design optimization, cost reduction, and rapid project delivery.

This partnership marks a major milestone for Oman’s national green hydrogen strategy, accelerating the country’s shift toward a decarbonized economy. The project follows a March 2024 memorandum of understanding between the two companies, transforming strategic vision into concrete action.