MUSCAT: Oman is rapidly emerging as a frontrunner in the Middle East and North Africa's (MENA) hydrogen sector, surpassing expectations and taking significant strides towards achieving its ambitious green hydrogen production targets. According to the newly released report "The Road from COP 28: Investment Trends in MENA's Hydrogen Sector in 2023" by World Hydrogen MENA, Oman's recent developments position it as a key player and potential global exporter of hydrogen.
Supported by favourable conditions for green hydrogen production and export, including abundant solar and wind resources, vast areas suitable for large-scale projects, existing infrastructure, and a strategic location with access to import markets such as Europe and Japan, Oman's potential in the hydrogen sector has become increasingly evident.
The report highlights Oman's strategic vision for the hydrogen industry, outlining its plans to produce 1-1.25 million tonnes of green hydrogen per year by 2030 to fulfill domestic needs and for export. By 2050, Oman envisions a staggering production capacity range of 7.5-8.5 million tonnes per year. With these ambitious targets, Oman seeks to position itself as a major global player in the rapidly expanding hydrogen market.
A crucial aspect of Oman's hydrogen strategy, the report stated, is the implementation of an auction system, which awards land blocks to interested developers for the construction of green hydrogen production plants. In 2023, Oman successfully concluded the first round of the tender, securing five agreements with consortia comprised of both local and international investors, amounting to a combined investment of $30 billion. The awarded land blocks, located in the Duqm area, are strategic and pivotal in realising Oman's 2030 green hydrogen production goals.
The projects awarded in the first round of the auction include partnerships with prominent entities such as Amnah consortium (Copenhagen Infrastructure Partners, Blue Power Partners, and Al Khadra), bp Oman, Green Energy Oman (GEO), and Engie, among others. These partnerships entail the construction of renewable energy capacity ranging from 3.5 GW to 5 GW, with expected hydrogen production capacities of 150,000 to 220,000 tonnes per year.
Importantly, Oman's green hydrogen production is not solely focused on export, but also emphasises domestic usage. The nation's largest steel manufacturer, Jindal Shadeed Group, has already commenced construction on a green steel plant in the Duqm area, powered entirely by renewable energy and green hydrogen. With a planned annual steel production capacity of 6 million tonnes, this project underscores Oman's commitment to clean, sustainable industrial development.
Furthermore, Oman's extensive natural gas network, encompassing approximately 4,000 km of pipelines linking crucial locations such as the ports of Salalah, Suhar, and Sur, provides an opportune foundation for the repurposing of infrastructure to facilitate hydrogen transportation. Alongside this, Oman is making significant plans for a 2,000 km network of hydrogen pipelines, initially supplying green hydrogen to key industrial zones – Duqm, Al Jazir, and Salalah. The ultimate goal is to extend this network to the capital Muscat by 2050.
Recognising the future demands of the global market, Oman is placing great importance on export infrastructure as well. Oman has already begun discussions with Dutch companies to study the development of a liquid hydrogen supply corridor between Oman and the Port of Amsterdam, enabling the export of green hydrogen to Europe. This collaboration includes evaluating the establishment of an open-access hydrogen liquefaction, storage, and export facility, as well as the utilization of specialized vessels by GasLog for efficient transportation.
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