Oman has the longest portfolio of green hydrogen developments in the GCC, as well as the best and most accurate strategy for the sector in recent years. It hopes to reach 30 gigatonnes of electrolyzer capacity by 2040, highlighting the nation’s sun, wind, and land supplies, as well as access to prospective markets and helpful government policies.
By 2030, the hydrogen field will be a significant contribution to Oman’s GDP and international affairs, offsetting the reduction in oil earnings. As Europe seeks to lessen its reliance on Russia for energy, the Sultanate of Oman’s marketing strategy will change from Asia to Europe, and global sovereign asset funds are poised to be big investors in Oman’s sustainable hydrogen movement.
The Omani government’s determination to pursue green hydrogen is motivated by four interconnected factors:
- The local and international financial crisis brought on by the drop in oil prices in 2020.
- The Sultanate of Oman’s high cost of petroleum products and low amounts of reserves.
- Gas constraints caused by high local consumption, limited production, and the necessity to meet LNG export obligations.
- Recognition that the Sultanate of Oman’s economy must diversify away from its reliance on hydrocarbons.
Both the government and international investors recognized Oman’s prospects for green hydrogen development. As more countries and businesses look to alternative energy to assist solve the challenge of decarbonizing economies, the country announced its intention for its first green hydrogen initiative in 2020.
According to the analysis, Duqm is a perfect location for green hydrogen production. The location is on significant global commerce routes, close outside the congested and politically divisive Strait of Hormuz.
Solar and wind energy are also available in Duqm all year long. Other prospects include a harbor that allows for easy export and import as well as large sections of land set aside for renewable energy development encompassing 150 square kilometers.
The growing impetus behind green hydrogen developments in Oman will strengthen over the coming decades, benefiting from the growth of a lucrative market with reduced production costs, the advancement of decarbonization activities, and the formation of the international market for green hydrogen.