Dhofar, Oman’s southernmost governorate, is rapidly emerging as a key player in the country’s drive towards renewable energy. With its natural advantages and strategic location, Dhofar is poised to become a centre for green energy production, playing a critical role in Oman’s broader energy transition. At the heart of this vision lies green hydrogen, a technology that promises to reshape the global energy landscape and position Oman as a leader in the clean energy revolution.
Oman’s ambition to transition to renewable energy is driven by both necessity and opportunity. As the world moves towards reducing carbon emissions and limiting reliance on fossil fuels, Oman’s vast solar and wind resources offer the perfect foundation for a sustainable energy future. Dhofar, in particular, is uniquely positioned to capitalise on these resources. The governorate’s geography, with its high solar radiation and consistent wind patterns, provides an ideal setting for large-scale renewable energy projects.
The green hydrogen sector is set to be a cornerstone of Oman’s renewable energy strategy, and Dhofar is at the forefront of this transformation. Recent land block auctions have paved the way for the establishment of three major green hydrogen projects in Dhofar, spanning 1,087 square kilometres. These projects aim to produce 553,000 tonnes of green hydrogen, leveraging the governorate’s renewable energy capacity, which stands at an impressive 14.1 GW of combined solar and wind power.
This development is a significant step towards realising Oman’s vision of becoming a global hub for green hydrogen production. Green hydrogen, produced by using renewable energy to split water into hydrogen and oxygen, is a clean and versatile fuel that can be used in various industries, from transportation to heavy manufacturing. Its potential to decarbonise sectors that have been difficult to shift away from fossil fuels makes it a critical component in the global fight against climate change.
To fully harness the potential of green hydrogen, Oman is investing in technological innovation and research. The focus is not just on production but also on improving storage, transport, and distribution technologies to make green hydrogen commercially viable. Initiatives such as partnerships with international research institutions and universities are expected to play a crucial role in advancing Oman’s capabilities in this space. Dhofar, with its renewable energy resources, can serve as a living laboratory for testing new technologies, which will further enhance the country’s green hydrogen production efficiency.
Oman’s green hydrogen projects in Dhofar are attracting attention from international investors and global energy companies. Partnerships with countries like Germany and South Korea, which are actively pursuing hydrogen as a clean energy source, present Oman with opportunities for technology transfer and shared expertise. These collaborations not only enhance Oman’s technical know-how but also provide a market for green hydrogen exports. With its strategic location near major global markets in Asia and Europe, Oman is well-placed to become a key supplier of green hydrogen, ensuring its place in the evolving energy landscape.
The environmental benefits of developing green hydrogen in Dhofar are profound. By focusing on clean energy sources, Oman is aligning itself with global climate goals, such as the Paris Agreement. The shift towards green hydrogen will significantly reduce the country’s carbon emissions, helping mitigate the effects of climate change. Additionally, the vast scale of Dhofar’s renewable energy projects will contribute to preserving Oman’s natural landscapes by minimising the environmental footprint of traditional fossil fuel energy sources.
Oman’s Vision 2040 outlines the country’s long-term goals for economic diversification, and green hydrogen plays a crucial role in achieving these objectives. By developing the renewable energy sector, Oman can reduce its reliance on oil and gas, which currently dominate the economy. Dhofar’s green hydrogen projects are set to create thousands of jobs, both in the construction and operation phases. This growth will stimulate the local economy, offering new career paths in clean energy technology, engineering, and project management. Furthermore, the skills developed through these projects will help Oman build a workforce capable of leading the transition to a low-carbon economy.
Developing a robust green hydrogen sector also enhances Oman’s energy security by reducing its dependence on fossil fuels. As global energy markets become increasingly competitive and volatile, Oman’s ability to produce its own clean energy through green hydrogen offers a buffer against external shocks. This shift not only strengthens Oman’s energy resilience but also enhances its geopolitical influence, as countries seek reliable suppliers of green hydrogen. Dhofar’s role as a major producer gives Oman leverage in international energy diplomacy and trade.
Dhofar’s renewable energy projects are set to transform the local communities. In addition to providing new employment opportunities, these projects will stimulate the region’s infrastructure development, improving transport, utilities, and communication networks. Educational initiatives aimed at equipping the local workforce with skills in renewable energy technology will ensure that the benefits of these projects are distributed across all levels of society. The government’s focus on localisation ensures that Dhofar’s green hydrogen developments will enhance the quality of life for residents while also contributing to Oman’s national economic goals.
Despite the promising potential of green hydrogen, challenges remain. The high costs of production and the need for extensive infrastructure development are significant hurdles. However, Oman’s government is addressing these challenges through a series of incentives, such as tax breaks and regulatory reforms aimed at attracting foreign investment. Additionally, advances in technology are expected to lower the costs of green hydrogen production over time, making it more competitive in the global market. Oman’s commitment to innovation and its willingness to collaborate with international partners provide a strong foundation for overcoming these obstacles.
As the global market for green hydrogen continues to expand, Oman’s competitive edge lies in its vast renewable energy resources and strategic location. Major global economies, particularly in Europe and Asia, are setting ambitious targets for hydrogen adoption. Oman’s ability to produce green hydrogen at scale makes it a natural supplier to these markets. As demand for clean energy grows, Oman’s investment in Dhofar’s green hydrogen sector will position the country as a major exporter, further boosting its economy and solidifying its role in the global energy transition.
In conclusion, Dhofar is not only central to Oman’s green energy future but also to the country’s economic diversification and sustainability goals. The governorate’s natural resources, combined with strategic international partnerships and cutting-edge technology, are driving Oman’s green hydrogen ambitions. As Oman continues to invest in renewable energy, Dhofar will play a leading role in shaping the country’s energy landscape, ensuring a sustainable and prosperous future for generations to come. The green hydrogen projects in Dhofar are more than just energy initiatives—they are a testament to Oman’s commitment to a future powered by innovation, sustainability, and global collaboration.
Qasim Al Maashani
The author is the head of Oman Observer's Business section
Oman Observer is now on the WhatsApp channel. Click here
