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Green Hydrogen H2 News

Oman: A Green Hydrogen Powerhouse in the Making

Arnes BiogradlijaBy Arnes Biogradlija19/10/20232 Mins Read
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Oman, a nation long associated with oil and gas, is embarking on an ambitious journey to become a global leader in green hydrogen production. With a massive investment of $33 billion earmarked for this sector, the Sultanate aims to produce at least 1 million tonnes of renewable hydrogen annually by 2030, rising to 8.5 million tonnes by 2050.

According to the International Energy Agency (IEA), Oman’s hydrogen targets are impressive. Reaching the 2040 target would represent 80% of Oman’s current LNG exports in energy-equivalent terms, while achieving the 2050 target would almost double them.

This ambitious undertaking will necessitate a significant increase in renewable energy generation. Meeting the 2030 target alone will require around 50 terawatt-hours of electricity, exceeding Oman’s current electricity system capacity.

The country’s Minister of Energy and Minerals, Salim Nasser Al Aufi, highlights the critical role of the energy sector in reducing carbon emissions and mitigating climate change risks. He emphasizes the importance of increasing renewable energy sources like solar and wind, improving energy efficiency, and investing in green hydrogen production projects.

Oman Hydrogen, a company owned by Energy Development of Oman, has signed six investment agreements worth nearly €20 billion for green hydrogen production over the next seven years. These projects will involve international partners from Belgium, the Netherlands, the United Kingdom, Japan, Singapore, Germany, India, Kuwait, and the United Arab Emirates.

With a combined production capacity of 15 GW of electricity, these projects will span an area of approximately 1,500 square kilometers in the Al Wusta and Dhofar provinces.

The IEA report indicates that Oman can cost-effectively achieve its targets of having renewables reach 20% of the country’s electricity mix by 2030 and 39% by 2040. This transition is expected to accelerate cost reduction and benefit the country’s overall electricity system.

Oman’s green hydrogen ambitions are not just about energy production; they represent a strategic move to diversify the economy and position the country as a key player in the global energy transition. With its abundant renewable energy resources and strategic location, Oman is well-positioned to become a green hydrogen powerhouse.

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