A white paper published recently by Gulf Intelligence, a leading strategic consulting firm for the energy and natural resources industry, has underscored the potential for the Sultanate of Oman to explore opportunities for investment in carbon capture and storage (CCS) in parallel with its Net Zero strategy.
The white paper, titled ‘How to Power Sustainable Economic Diversification in Oman’, highlights in particular opportunities linked to large-scale seaweed farming, as well as the use of geological formations for the storage of planet-warming carbon dioxide (CO2).
The report summarises the thoughts of top energy sector executives from Oman and abroad, who were invited to participate in a recent forum on ESG (Environmental, Social and Governance) hosted by Gulf Intelligence.
Carbon Capture and Storage (CCS) relates to processes and technologies in which CO2 from industrial and other sources is separated, treated and stored typically in underground geological formations, such as depleted hydrocarbon reservoirs, salt caverns, and so on. The goal is to reduce greenhouse gas emissions and thereby mitigate climate change.
According to the Gulf Intelligence white paper, Oman hosts unique rock formations that can be evaluated for their potential to serve as carbon sinks – a move that will also help “maximize the country’s competitive and environmental advantage”.
Equally promising is the potential for large-scale farming of seaweed, which captures and stores huge quantities of CO2 in its biomass. Deep water along parts of Oman’s lengthy coastline is conducive for seaweed cultivation because of the occurrence of upwellings that bring nutrients to the surface, thereby supporting seaweed growth.
In addition to its carbon sequestration characteristics, seaweed farming can also open up other valuable commercial opportunities, the report pointed out. “Everything from biofuels to yogurt uses seaweed, so we really should be exploring that for carbon capture as well,” a participant was quoted as saying.
However, one key constraint holding back CCS development in Oman is the steep cost involved, according to the white paper. Participates, while cautioning that the cost of inaction on CCS is even worse, nevertheless were unanimous in their view that the answer lies in “collective action”.
“Everyone must pay some degree of the cost for building a commercially viable CCS supply chain, which means more open forums to allocate responsibilities and obligations are needed. Importantly, timing to build a CCS ecosystem more vigorously is in Oman’s favour,” they stressed.
Attendees also called for more incentives from the government to support CCS efforts in the short-term. “A more holistic approach – one that includes supporting methods to reduce CO2 emissions in the hydrocarbon market, like CCS – are much-needed. A cushion in the short to medium term would help spur investors’ appetite, both within Oman and internationally,” they added.
Significantly, a number of oil and gas producers in Oman, notably Petroleum Development Oman (PDO) and Oxy Oman, are weighing opportunities for CCS development as part of their Net Zero commitments.
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