MUSCAT: Sectorial readiness is key to establishing a successful green hydrogen ecosystem and achieving a target of 1 million tonnes of H2 by 2030, according to Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals and Chairman of Hydrom.
Speaking at a workshop held here yesterday, June 12, 2024, aimed at assessing the readiness of the green hydrogen ecosystem in the country, Al Aufi underscored the significance of identifying challenges within supporting sectors. These include logistics, permits and licensing, contracting, and labour.
The minister shared that following the strides made in the green hydrogen sector, including the signing of 8 green hydrogen concessions with an investment value of over $40 billion, the need for 30 GW of energy has been identified to power these projects. In comparison, the country's current production capacity stands at 11 GW of conventional electricity and 600 MW of solar energy, he noted.
In order to generate the required renewable power for green hydrogen production, an estimated 40 million solar cells and 2,000-2,500 wind turbines will be required, which in turn will necessitate sourcing, transporting, and installation, he said.
Furthermore, Al Aufi shared that the ecosystem will also require an estimated workforce of over 52,000 individuals, representing a significant employment opportunity, although environment, health and safety considerations need to be factored in.
Accordingly, an integrated and coordinated approach to the sector’s ecosystem is crucial due to its economic significance and to solidify Oman’s position as a potential global hydrogen producer, he stressed.
Later, in remarks to the Observer, Eng Abdulaziz al Shidhani, Managing Director of Hydrom, shared that the signed projects are expected to have a cascade effect on the local economy and attract further investments.
“[The recent signed contracts] will have a cascading effect on the overall economy, presenting both challenges and opportunities across various sectors, including ports, logistics, SMEs, manufacturing, and even in areas like training and accommodation,” he said.
“So we anticipate that these investments will stimulate further investments and opportunities in other sectors,” he added.
According to the International Energy Agency (IEA), Oman is expected to generate revenues of $2 billion from the export and domestic use of green hydrogen starting from 2030 with the potential of this figure rising to “double-digit USD billion levels” in the long term.
Furthermore, according to the National Strategy for the Orderly Transition to Net Zero, the sector is expected to potentially contribute an additional 50% to the GDP by 2050. The outcomes of the workshop are expected to be published within the following weeks.
Oman Observer is now on the WhatsApp channel. Click here
