Oman can become a global sustainability leader
Published: 03:12 PM,Dec 18,2024 | EDITED : 08:12 PM,Dec 18,2024
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MUSCAT, DEC 18
Oman is well-positioned to emerge as a global leader in sustainability by leveraging its green economy potential, said Eng Abdulaziz bin Said al Shaithani, Managing Director of Hydrom, during the GH2 Investor Day. He outlined how Oman’s drive toward green hydrogen production and other sustainable industries could transform its economy, creating a resilient and diversified future beyond oil and gas.
UNLOCKING ECONOMIC GROWTH
Eng Al Shaithani emphasised that the green economy offers a pathway for Oman to achieve economic growth beyond traditional sectors. He highlighted the potential for localising new industries, fostering economic diversification and reducing dependence on oil and gas revenues. This shift could help shield the economy from volatile energy prices while promoting long-term sustainability.
“The green economy brings resilience, decarbonisation and diversification, ensuring a more stable and prosperous future,” he stated.
HYDROGEN AS A CATALYST FOR TRANSFORMATION
Hydrogen production stands at the forefront of Oman’s sustainability ambitions. The country aims to produce between 1.0 and 1.5 million tonnes of green hydrogen annually by 2030, scaling up to 3.3–3.8 million tonnes by 2040 and 7.5–8.5 million tonnes by 2050.
According to Al Shaithani, this emerging industry can create a “virtuous cycle” that drives development across multiple sectors:
Mining Hub: Oman’s mineral-rich landscape could support green-powered mining operations, supplying critical minerals for renewable energy projects and the hydrogen value chain.
Industrial & Technological Hub: Abundant, low-cost renewable energy from green hydrogen could attract energy-intensive industries and stimulate technological innovation.
Renewables & Hydrogen Hub: The Sultanate of Oman could become a leading exporter of green hydrogen derivatives, particularly for shipping and other industries looking to decarbonise.
Agricultural Hub: By repurposing excess electricity and water from hydrogen production, Oman could boost its agricultural output, enhancing food security.
Tourism Hub: Sustainable tourism could flourish as suppliers adopt environmentally friendly practices, helping preserve Oman’s natural landscapes.
Bunkering & Logistics Hub: Oman could emerge as a critical logistics and shipping hub, providing sustainable fuel alternatives to the global maritime industry.
“Hydrogen is just one example,” Al Shaithani noted. “The green economy offers diverse opportunities, from public transport infrastructure to sustainable agriculture.”
A STRATEGIC VISION FOR THE FUTURE
This holistic approach aligns with Oman Vision 2040, which aims to diversify the economy, boost renewable energy capacity and create thousands of high-skilled jobs. According to Al Shaithani, fostering an integrated green economy will not only drive economic growth but also position Oman as a sustainability leader on the global stage.
Oman has already secured eight major green hydrogen agreements worth $50 billion since launching its green hydrogen strategy in 2022. The projects are expected to generate 18 GW of renewable energy and 1.5 million tonnes of green hydrogen annually by 2030, underscoring Oman’s commitment to becoming a global clean energy powerhouse.
Oman is well-positioned to emerge as a global leader in sustainability by leveraging its green economy potential, said Eng Abdulaziz bin Said al Shaithani, Managing Director of Hydrom, during the GH2 Investor Day. He outlined how Oman’s drive toward green hydrogen production and other sustainable industries could transform its economy, creating a resilient and diversified future beyond oil and gas.
UNLOCKING ECONOMIC GROWTH
Eng Al Shaithani emphasised that the green economy offers a pathway for Oman to achieve economic growth beyond traditional sectors. He highlighted the potential for localising new industries, fostering economic diversification and reducing dependence on oil and gas revenues. This shift could help shield the economy from volatile energy prices while promoting long-term sustainability.
“The green economy brings resilience, decarbonisation and diversification, ensuring a more stable and prosperous future,” he stated.
HYDROGEN AS A CATALYST FOR TRANSFORMATION
Hydrogen production stands at the forefront of Oman’s sustainability ambitions. The country aims to produce between 1.0 and 1.5 million tonnes of green hydrogen annually by 2030, scaling up to 3.3–3.8 million tonnes by 2040 and 7.5–8.5 million tonnes by 2050.
According to Al Shaithani, this emerging industry can create a “virtuous cycle” that drives development across multiple sectors:
Mining Hub: Oman’s mineral-rich landscape could support green-powered mining operations, supplying critical minerals for renewable energy projects and the hydrogen value chain.
Industrial & Technological Hub: Abundant, low-cost renewable energy from green hydrogen could attract energy-intensive industries and stimulate technological innovation.
Renewables & Hydrogen Hub: The Sultanate of Oman could become a leading exporter of green hydrogen derivatives, particularly for shipping and other industries looking to decarbonise.
Agricultural Hub: By repurposing excess electricity and water from hydrogen production, Oman could boost its agricultural output, enhancing food security.
Tourism Hub: Sustainable tourism could flourish as suppliers adopt environmentally friendly practices, helping preserve Oman’s natural landscapes.
Bunkering & Logistics Hub: Oman could emerge as a critical logistics and shipping hub, providing sustainable fuel alternatives to the global maritime industry.
“Hydrogen is just one example,” Al Shaithani noted. “The green economy offers diverse opportunities, from public transport infrastructure to sustainable agriculture.”
A STRATEGIC VISION FOR THE FUTURE
This holistic approach aligns with Oman Vision 2040, which aims to diversify the economy, boost renewable energy capacity and create thousands of high-skilled jobs. According to Al Shaithani, fostering an integrated green economy will not only drive economic growth but also position Oman as a sustainability leader on the global stage.
Oman has already secured eight major green hydrogen agreements worth $50 billion since launching its green hydrogen strategy in 2022. The projects are expected to generate 18 GW of renewable energy and 1.5 million tonnes of green hydrogen annually by 2030, underscoring Oman’s commitment to becoming a global clean energy powerhouse.