Oman is poised to attract $49 billion in investments into its burgeoning green hydrogen sector, as reported by the Oman Daily Observer. Once a newcomer to the global green energy scene, Oman is now recognized as a frontrunner in this transformative sector within the Middle East.
This recognition includes a ranking by the International Energy Agency (IEA), which highlights Oman as one of the few regional nations set to exceed their national hydrogen production goals. Oman plans to install enough solar and wind capacity to power electrolyzers capable of producing at least 1 million tonnes of green hydrogen annually by 2030, with production expected to reach 1.38 million tonnes by then and scale to 7.5–8 million tonnes per annum by 2050, backed by $140 billion in total investments.
The country’s renewable energy capacity, currently around 700 MW, is forecasted to grow to nearly 3 GW by 2025 and 4.5 GW by 2030. This increase will elevate renewables’ share of total power generation from 3% today to 30% by decade’s end, bolstered by five onshore wind power projects contributing 1 GW.
Comprehensive Energy Transition Strategy
Oman’s green hydrogen ambitions are part of a broader strategy to achieve net-zero emissions by 2050. Key pillars include energy efficiency, renewable energy, a hydrogen-powered economy, green mobility, and carbon capture and utilization. The Ministry of Energy and Minerals has identified objectives such as ensuring energy security, promoting decarbonization, building local capacity, and maintaining Oman’s global competitiveness.
To maximize economic benefits, the government has initiated localization efforts. A Green Hydrogen Ecosystem Readiness Laboratory recently brought together Omani experts to develop proposals for manufacturing the hardware needed for hydrogen projects, including 300 million solar panels, over 10,000 wind turbines, and 5,200 electrolyzers by 2050.
Expanding Industrial and International Partnerships
The localization strategy also envisions the development of forward-connected industries, such as wind turbine component production, solar PV assembly, and electrolyzer manufacturing. It projects significant material demands through 2050, including 44 million tonnes of concrete, 25 million tonnes of steel, and 950 kilotonnes of plastics annually.
International partnerships are vital to this effort. For instance:
- China’s Jietai New Energy Technology Co. is investing $700 million in a solar cell manufacturing facility in Sohar Freezone, with a capacity of 5 GW annually, set to complete by 2025.
- United Solar Polysilicon (FZC) SPC is developing a $1.6 billion polysilicon plant, critical for solar cell production.
- The Oman Investment Authority and Siemens Energy are exploring local electrolyzer manufacturing to support hydrogen production.
These initiatives represent foundational steps in Oman’s journey to becoming a leader in green energy production and a key player in global sustainability efforts.
