Synthetic methane, or e-methane, is produced via the Power-to-Gas (PtG) process, where renewable electricity is used to generate green hydrogen through electrolysis. The e-methane production process blends green hydrogen with collected carbon dioxide (CO2) from various processes.
The existing natural gas infrastructure can store and utilise this renewable methane, making it a viable solution for energy storage and grid stabilisation. Green hydrogen and synthetic methane are both essential components of the global shift to cleaner energy.
The International Energy Agency (IEA) projects that by 2050, the need for hydrogen will have multiplied sixfold, with green hydrogen being essential to achieving climate targets. Global announcements revealed nearly 520 green hydrogen projects as of 2023, with a projected $240 billion investment by 2030. Synthetic methane, a product of green hydrogen, is also gaining popularity, particularly in Europe and Asia.
By 2030, the European Union wants to manufacture 10 million tonnes of hydrogen per year in addition to large-scale attempts to produce synthetic methane in nations like South Korea and Japan. These accomplishments illustrate the importance of Oman's audacious approach in this quickly expanding sector and the global trend toward sustainable energy solutions.
Fossil fuel deposits dominate Oman's energy landscape, which has historically supported the country's economic growth. The International Energy Agency (IEA) estimates that Oman's oil production in 2020 was close to 971,000 barrels per day.
But with primary energy consumption expected to rise by 3.1% a year until 2040, Oman is keen on mitigating the environmental impact through innovative technologies like synthetic methane production.
Oman is making significant strides towards sustainability and carbon neutrality with its ambitious plans for synthetic methane and green hydrogen production. Oman's Vision 2040, which aims for carbon neutrality by 2050 and significant contributions from non-oil sectors to the Gross Domestic Product (GDP), drives this strategic shift.
By 2030, Oman plans to produce more than 250,000 tonnes of synthetic methane annually, reducing approximately 1.5 million tonnes of CO2 emissions per year. This ambitious goal fits in with Oman's larger plans of achieving carbon neutrality and fostering a sustainable future.
Furthermore, green hydrogen production is critical to Oman's energy transition. With between $30 billion and $50 billion in investments, Oman aspires to produce more than a million tonnes of green hydrogen by 2030. Oman expects its output to reach 8.5 million tonnes annually by 2050, necessitating an investment of nearly $120 billion. The inauguration of the Ibri Solar Power Plant in January 2022, the Sultanate's largest renewable energy project with a 500 MW capacity and an investment cost of RO 155 million ($403 million), highlighted Oman's commitment to green hydrogen.
Furthermore, the Sur solar desalination plant, inaugurated in November 2023, can produce green electricity exceeds 32,000 megawatt-hours annually. This output will meet 100% of the 17 megawatts desalination plant's daily energy needs. The Dhofar 2 wind power plant, expected to become operational in 2026, will have a capacity of 100 to 200 megawatts.
Oman Power and Water Procurement Company (OPWP) has partnered with international technology providers to deploy PtG facilities across the country. Collaborations with Siemens Energy and OQ, Oman's global integrated energy group, are exploring green hydrogen and synthetic methane production. The green hydrogen plant in Duqm, expected to produce 50,000 tonnes of hydrogen annually, exemplifies such innovative projects.
Leading the way to achieve carbon neutrality is Oman's Ministry of Transport, Communications, and Information Technology, which has a comprehensive strategy to cut emissions by 3% by 2030, 34% by 2040, and 100% by 2050.
This strategy calls for promoting the use of biofuels, hydrogen for heavy transportation, electric cars, and technology to reduce emissions. Oman's abundance of renewable energy resources, especially solar and wind power, which are crucial for the PtG process, puts it in a unique position to manufacture synthetic methane.
Because the country's extensive desert regions receive some of the highest solar radiation levels in the world, solar energy is an essential resource for electrolysis, which produces green hydrogen. Furthermore, Oman's coastal regions have a lot of wind potential, which adds more renewable energy to the process of producing synthetic methane.
Oman can easily incorporate synthetic methane for grid stabilisation and energy storage into its energy system because it already has a robust natural gas infrastructure in place. Additionally, Oman can absorb and combine carbon dioxide emissions from industrial sources, such as oil refineries, with green hydrogen to form a closed-loop process that aids in achieving carbon neutrality.
In March 2023, Oman LNG partnered with Japan's Hitachi Zusen and Hitachi Innova to explore synthetic methane production, aiming to cut Oman's carbon emissions and boost its natural gas infrastructure with renewables. Oman also pursued global cooperation in green hydrogen, negotiating long-term contracts in Germany for hydrogen and ammonia, and launching agreements with the Dutch port of Amsterdam for a liquid hydrogen corridor to enhance global market access efficiently.
The country expects that the above-stated initiatives will not only deliver substantial environmental benefits but also drive socio-economic growth. Furthermore, these initiatives are expected to foster economic diversification and generate thousands of new employment opportunities. With oil earnings making up 77% of all government income in 2022, the oil industry's contribution is 37.7% of Oman's nominal GDP.
Using this cutting-edge technology, Oman hopes to improve energy efficiency, cut greenhouse gas emissions dramatically, and open new avenues for revenue diversification. Oman is demonstrating proactive leadership in addressing global climate concerns, boosting competitiveness, and igniting a low-carbon future through its push for green hydrogen and synthetic methane.
With ongoing PtG infrastructure investment and global partnerships, Oman aims to lead in sustainable development, setting a model for others towards a carbon-neutral economy.
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