MUSCAT: The potential for Oman’s mega-scale green hydrogen sector to ignite the growth of adjacent industries has been highlighted by the International Renewable Energy Agency (IRENA) in a new report.
Titled ‘Shaping Sustainable International Hydrogen Value Chains’, the report sheds light on, among other things, the potential socio-economic benefits for countries embarking on energy transitions powered by green hydrogen.
Citing Oman’s green hydrogen strategy, as outlined by Hydrom – the orchestrator and master-planner of the sector – IRENA stated: “In the latest strategy, Oman foresees green hydrogen as a catalyst for significant local industrialisation, as well as substantial local production of various raw materials and components. Furthermore, the transition will spur new industries, including local manufacturing of solar panels, wind turbines and electrolysers, supporting green steel and e-fuel production.”
Importantly, this industrial expansion will not only drive the development of green hydrogen but also stimulate adjacent industries - from mining to green steel production - resulting in “positive feedback loops,” according to the Abu Dhabi based body.
“For example the growth of the mining sector, powered by renewable energy is seen to support the renewable energy value chain. In agriculture, excess electricity and water trickling from green hydrogen production is seen to boost output, enabling increased crop and cattle production. These developments are set to enhance Oman's business ecosystem, driving economic diversification and sustainability,” it added.
An updated version of Oman’s Green Hydrogen Strategy, published in May this year, affirms a commitment to In Country Value (ICV) and domestic industry developments as key national goals. It stresses, in particular, the potential for spurring localisation of key industries and forward connected industries in existing and new industrial zones.
For example, massive quantities of hydrogen assets – an estimated 300 million solar panels, over 10,000 wind turbines and 5,200 electrolyzers - are envisaged for installation as part of the upstream components of the green hydrogen projects set to come up in Oman over the next 25 years through to 2050.
This mammoth requirement opens up short-term opportunities for the localisation of, for example, wind turbine manufacturing of components (tower segments and blades), iron ore pellet and hot-briquetted iron production, solar PV assembly, electrolyzer assembly and logistic solutions, services and infrastructure. Adding to this list in the medium term are opportunities for, among others, e-Fuel prouction, electrolyzer manufacturing, and green steel production.
Furthermore, the onshoring of these manufacturing opportunities will necessitate access to prodigious quantities of raw materials. “The deployment of wind turbines, solar panels and electrolysers will require corresponding increases in the local production of steel, concrete, plastics, glass, aluminium, copper, silicon and nickel,” explained IRENA in its report.
According to Hydrom, basic raw materials necessary to develop Oman’s upstream hydrogen assets through to 2050 are estimated at: 44 million tonnes per annum (Mtpa) of concrete, 25 Mtpa of steel, 950 kilotonnes per annum (ktpa) of plastics, 5.1 Mtpa of glass, 850 ktpa of aluminium, 500 ktpa of copper, 450 ktpa of silicon, and 45 ktpa of nickel.
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