MUSCAT: With anticipated inflows of billions of dollars into Oman’s nascent green hydrogen industry in the coming years, the potential for investment in new manufacturing industries linked to this emerging sector is immense, Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, has stressed.
Participating in a panel discussion held as part of the Green Hydrogen Summit Oman (GHSO) 2022 forum on Tuesday, Al Aufi said the Sultanate of Oman represents a promising “captive market” for investors looking to meet the hardware needs of this mammoth new economic sector.
“We are talking about millions of solar panels that will be required from now until 2030,” he pointed out. “If I calculate the numbers, we’re talking about 25 to 30 million solar panels that need to be installed to meet the targeted production of one million tonnes per annum of hydrogen by 2030.”
Side by side with solar capacity, an estimated 5000 – 6000 wind turbines will be required as well, he noted.”
Multiply that by three, that tells you how many blades we will need; Add to that the electrolyser capacity that will be required only for the projects that we’re currently talking about, not Round Two, which will come in April, and Round 3, which will come in December or January 2024 and so on.
And by the time we get to 2030, these numbers are going to be pretty much in the wash. And if any supply chain or manufacturing industry thinks that this is not a captive market that they would want to be very close to, I think they’re going to be missing the boat.”
At the unveiling of Oman’s National Green Hydrogen Strategy in October, officials had stressed a new industry around green hydrogen has the potential to unlock vast 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, it was pointed out.
Al Aufi also stressed that developers eyeing lucrative acreage for green hydrogen investment must also spell out their strategies for local value creation over the 47-year concessions pledged by the Omani government.
“In the current auction process that we have launched for green hydrogen projects, the criteria we use for evaluating investment is based on what In-Country Value you’ll be bringing locally; what industries that are already established that will be using your green molecules; what new industries are you going to help us bring into Oman and connect us to the different requirements, whether it’s solar panels, wind turbines, electrolysers, and so on; how sustainable, meaningful jobs will you be creating; how much of your hydrogen production is going to be utilised in establishing new industries in Oman or decarbonising existing industries locally, and so on.”
The auction of acreage for green hydrogen project development is centred on growing the local economy as opposed to generating a dollar value for the government, the Minister added.
Also taking part in the panel discussion were: Dr M G Michel Heijdra, Deputy Vice Minister for Climate and Energy at the Ministry of Economic Affairs and Climate Policy, Netherlands; Ellen von Zitzewitz, Deputy Director Energy Cooperation with North Africa, the Near and Middle East, German Federal Ministry for Economic Affairs and Climate Action (BMWK), and Steve Phimister, Managing Director – Petroleum Development Oman (PDO). The moderator was Nima Abu Wardeh, former BBC news anchor.
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