Oman

Oman country flag
GH2 Country Portal – Oman

Green Hydrogen Vision

The Government of Oman aims to derive 30% of electricity from renewable sources by 2030, as one of the objectives of Oman Vision 2040 and the National Energy Strategy (April 2022). On the other end, natural gas, which has long been a key to its economic growth, is dwindling, with close to 10 to 20 years of supply left.

Oman stands to benefit from renewable sources of energy including green hydrogen. With immense solar radiation, and wind speed coupled with adequate land, easy access to water and free zones for manufacturing, Oman is well placed to transition to a green hydrogen economy.

Oman is looking to cement its position as a regional leader in the emerging green hydrogen sector and has established a state-owned entity, Hydrogen Development Oman to manage its expanding list of planned projects.

National Strategy

Oman’s Green Hydrogen Strategy of 2022 represents a bold vision to transition towards renewable energy and establish itself as a global leader in the hydrogen economy. This strategy involves significant investments, development of key infrastructure, and a commitment to sustainability and economic diversification. Oman has outlined five primary objectives to drive its green hydrogen initiative: 

  • Decarbonisation: Focus on reducing carbon emissions to safeguard a sustainable future and align with the global net-zero emissions target by 2050. 

  • Economic Diversification: Onshore the supply chain, stimulate industrial activity, and create long-term employment opportunities in hydrogen-related industries. 

  • Energy Security: Strengthen national and international energy security through sustainable and renewable hydrogen production. 

  • Global Competitiveness: Develop a green hydrogen sector that is cost-competitive in global markets, attracting foreign direct investment (FDI). 

  • Innovation and Capabilities: Support innovation and build expertise within the green hydrogen ecosystem.

Capacity and Price targets

Oman has earmarked approximately 50,000 km² of land, primarily in regions with high wind and solar potential (e.g., Duqm, Dhofar, and Al Jazir). This land is estimated to support: 

  • Renewable capacity of up to 180 GW. 

  • Production of 25 million tons per annum (Mtpa) of green hydrogen by 2050.

Oman aims to install approximately 300 million solar panels, 10,000 wind turbines, and 5,200 electrolysers to achieve production targets by 2050. 

Impact Targets

By 2050, Oman aims to: 

  • Achieve 7.5–8.5 Mtpa of green hydrogen production, catering to both domestic use and exports. 

  • Become fully integrated into the global hydrogen economy, leveraging its renewable resources and strategic location. 

  • Create approximately 70,000 new permanent jobs, with 17,000 managerial roles, fostering local talent and expertise. 

The strategy focuses on integrating green hydrogen into various industries, including: 

  • Ammonia production: A key derivative product for export. 

  • Shipping and transport: To decarbonise local and international transportation. 

  • Heavy industries: Replacement of grey hydrogen with green hydrogen to reduce emissions in sectors like steel and chemicals. 

Project Spotlight

  • HyPort Duqm: The high-profile project is a partnership from December 2021, between OQ, Germany’s Uniper and Belgium’s DEME, which aims to build a green hydrogen/ammonia facility at Duqm, powered by 1.3GW of renewable energy with wind and solar plants. It is planned within the Special Economic Zone at Duqm (Sezad) in an area of about 150 square kilometres and will operate a 500 MW electrolyser to produce an estimated 60,000 metric tonnes per annum of green hydrogen. This will yield 330,000 metric tonnes per annum of green ammonia for export. A final investment decision (FID) on Hyport Duqm is slated during 2023, with Phase 1 of the project targeted for start-up in 2026.
     
  • SalalaH2: Announced in October 2021, the project was announced for the coastal city of Salalah by co-developers OQ, industrial gases company Linde and the Dubai Transport Company. About 1GW of wind and solar will power a 400MW of electrolysers, which will feed an existing ammonia production plant owned & operated by OQ (the plant currently relies on gas as a feedstock). A $1 billion is being invested by the companies towards this.
     
  • ACME: Indian renewables developer ACME won a $3.5 billion bid in August 2021 to build one of the world’s largest green ammonia projects at Oman’s Port of Duqm, using hydrogen electrolysers powered by 3GW of solar and 500MW of wind power. The full-scale plant would produce about 900,000 tonnes of green ammonia annually.
     
  • BP Project: Earlier in January 2022, Oman’s Ministry of Energy and Minerals signed a strategic framework agreement with the British energy giant, BP to deliver a multiple-GW renewable energy and green hydrogen project by 2030. BP will capture and evaluate solar and wind data from 8,000 sq. km of land.
     
  • Worley Project: In April 2022, Green Energy Oman (GEO), an international consortium, has approached Worley to support their support their 25-gigawatt (GW) solar and wind powered green hydrogen Project. The overall project aims to produce over 1.8 million tons of low-carbon green hydrogen which can produce up to 10 million tons of green ammonia per annum, supporting the local economy and global markets.
     
  • In April 2024, Hydrom, Oman’s visionary green hydrogen orchestrator, has proudly announced the signing of two groundbreaking green hydrogen projects in Dhofar, valued at an impressive $11 billion. This milestone follows the successful completion of Hydrom’s second round of auctions, propelling Oman’s total hydrogen production to an ambitious 1.38 million tonnes per year (mtpa) by 2030. The first agreement was forged with a consortium that includes Electricité de France S.A. and its subsidiary EDF Renewables, Electric Power Development Co., Ltd. (J-POWER), and YamnaCo Ltd. The second partnership was established with Actis, a leading global investor in sustainable infrastructure, and Fortescue, a trailblazer in green energy, metals, and technology. 

Financing

  • No exact figure has been set out by the government in particular for the green hydrogen economy.
  • A number of green hydrogen projects have been announced, including the $3.5 billion for the ACME project, $1 billion each by the consortium of partners for the HyPort Duqm and the SalalaH2 projects.

Government Green Hydrogen Lead

Ministry of Energy and Minerals