Muscat – The Ministry of Energy and Minerals on Sunday affirmed the sultanate’s commitment to achieve carbon neutral goals and green hydrogen as it offered a slew of incentives to investors.
While the land has been identified in cooperation with the ministries of Defense, Housing, and Environment Authority, the Sultanate will be offering investors in hydrogen projects incentives
such as minimum land fees, and waiving of land fees during developing stages.
The initial two blocks offered to investors will be in Duqm outside the free zone and the remaining four will be offered in Thumrait.
For phase 1, the first projects are to be awarded by Q1, 2023 and developers will be expected to deliver integrated projects, but common infrastructure will be tendered separately.
Once completed, Oman expects to be a key importer of green hydrogen to countries in Western Europe and Japan.
Eng. Fayza Al Harthy, Head of Energy, Environment and Natural Resources Priority Support in the Vision 2040 Vision Implementation Follow-up Unit, said, "The vision is to create an effective, balanced and flexible system to protect and sustain Oman's natural resources in support of the national economy."
Najla Zuhair al Jamali, CEO, of Alternative Energy, OQ, said, “Oman's energy mix is undergoing a stimulus shift as the country forges ahead in its drive to build a hydrogen-centric economy that will support Vision 2040 diversification efforts. As an Omani integrated energy group, OQ, represented by OQ Alternative Energy, is well poised to enable the collective efforts to achieve our national economic goals and reach net zero by 2050. Working closely with the Ministry of Energy and Minerals, and the Oman Sustainability Center, OQ AE is chartering a clear pathway for decarbonization and carbon neutrality. In addition to acting responsibly, we believe that the partnerships we are forging and projects that we are developing will place Oman on the global map for Green Hydrogen.”
It may be noted that the government has affirmed its commitment to reaching Net Zero Emissions in 2050, in line with the Paris Agreement’s objectives of limiting global warming to 1.5°C compared to
pre-industrial levels. His Majesty Sultan Haitham bin Tarik recently mandated the creation of an Oman Sustainability Centre, which will be a nodal agency to supervise and follow up on plans for carbon neutrality.
Eng. Salim bin Nasser Al Aufi, Minister of Energy and Mineral, said, “Oman is committed to decarbonizing and helping the world decarbonize. The pathway to net zero is an opportunity for Oman to create economic value, increase industrial competitiveness and attract investments to help diversify and strengthen the country’s economy.”
The Sultanate of Oman is blessed with abundant renewable resources positioning it as one of the most attractive nations to produce green hydrogen competitively and at large-scale.”
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