R G Y F U T

UNDER THE LEADERSHIP OF HIS MAJESTY SULTAN HAITHAM BIN TARIK, THE SULTANATE OF OMAN HAS COMMITTED TO REACHING NET-ZERO EMISSIONS BY 2050, IN LINE WITH THE PARIS AGREEMENT’S OBJECTIVES OF LIMITING GLOBAL WARMING TO 1.5°C COMPARED TO PRE-INDUSTRIAL LEVELS

Pledging to transition away from hydrocarbons and into a low-carbon energy future, the Sultanate of Oman, represented by the Ministry of Energy and Minerals, recently unveiled its ambitious Green Hydrogen Strategy – an initiative that envisions an estimated $140 billion in new investments. Indeed, under the leadership of His Majesty Sultan Haitham bin Tarik, the Sultanate of Oman has committed to reaching Net-zero Emissions by 2050, in line with the Paris Agreement’s objectives of limiting global warming to 1.5°C compared to pre-industrial levels. To lead its transition towards a green economy, His Majesty has mandated the creation of the Oman Sustainability Centre. The centre will be the leading body undertaking the supervising and follow-up plans and programmes of carbon neutrality. Announcing the new strategy, Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, said, “The Sultanate of Oman is committed to decarbonising and helping the world decarbonise. The pathway to net-zero is an opportunity for the Sultanate of Oman to create economic value, increase industrial competitiveness and attract investments to help diversify and strengthen the country’s economy.“He added: “Green hydrogen presents itself as a key factor that enables the Sultanate of Oman to pursue its decarbonisation, economic and energy security objectives. With the abundant renewable energy resources Oman is blessed with and with the appropriate structuring of the sector via the creation of Hydrogen Oman as directed by His Majesty, Oman is positioned as one of the most attractive nations to produce green hydrogen competitively and at a large-scale.”

HYDROGEN STRATEGY

To lead the country’s ambitious green hydrogen strategy, the government established HYDROM, a fully owned autonomous subsidiary of Energy Development Oman SAOC and regulated by the Ministry of Energy and Minerals.

HYDROM’S mandate includes the delineation of government-owned land areas and the structuring of associated large-scale, world-class green hydrogen projects, managing the process for their allocation to developers as well as facilitating the development of common infrastructure and connected ecosystem industries and hubs in close collaboration with the Public Authority for Special Economic Zones and Free Zones (OPAZ). Recently, HYDROM opened a first public bid round aimed at awarding the first land blocks by 2023 to meet the 2030 production target.

STRATEGIC OPPORTUNITY

Oman aims to become one of the world’s leading green hydrogen hubs. The nation has set an ambition to become one of the largest green hydrogen producers and exporters globally, targeting production of one million tonnes by 2030. The development of the green hydrogen economy will provide a strategic opportunity for Omani and international companies to participate and collaborate in driving local and global energy security, economic diversification and much-needed climate change mitigation.

Importantly, green hydrogen-related investments will unlock immense investment opportunities across the value chain. It includes opportunities in the manufacture of solar panels, wind turbines, electrolysers, hydrogen-derived products, storage and transportation, water desalination and other components. Oman’s investments alone will encompass about 3 million solar panels, approximately 10,000 wind turbines, 5,200 electrolysis units and about 180 GW of renewable energy production capacity.

OMAN AIMS TO BECOME ONE OF THE WORLD’S LEADING GREEN HYDROGEN HUBS