As climate change continues to pose significant challenges, stakeholders are increasingly considering green hydrogen (GH2) as a viable alternative, giving rise to a “green hydrogen economy.” This emerging economy has the potential to transform energy systems by playing a central role in energy production, storage, and utilisation across various industrial sectors, thereby reducing reliance on fossil fuels and enabling a transition to a sustainable, low-carbon future.
Governments and institutions worldwide are now focusing on developing green hydrogen economies. However, this transition is not without challenges, including high production and infrastructure costs, the need for advanced technologies to scale production, and the adaptation of policy and regulatory frameworks with appropriate incentives. To address these challenges, governments and organisations have launched dedicated funds and programs for green hydrogen projects.
Notable initiatives include the European Investment Bank’s green hydrogen funds, the US Department of Energy’s H2Hubs programme, and Hy24, the world’s largest hydrogen investment platform. These efforts are complemented by numerous other projects worldwide.
Oman’s ambitious green hydrogen strategy marks a significant step toward sustainability, economic diversification, and global leadership in energy. The country is actively advancing its green hydrogen sector through strategic initiatives and substantial investments.
A key player in this endeavour is Hydrom, a subsidiary of Energy Development Oman SAOC (EDO), which manages and orchestrates the nation’s green hydrogen strategy. Hydrom has been instrumental in facilitating major projects by granting land rights and forming partnerships with international investors.
While Oman’s abundant renewable resources and strategic location provide a strong foundation, success will depend on addressing essential areas such as shared infrastructure, localisation, and workforce development. Oman must strengthen its commitment to integrating local industries and small and medium enterprises (SMEs) into the hydrogen value chain, fostering inclusivity and reducing reliance on imports.
Developing shared infrastructure, such as desalination systems and hydrogen pipelines, will be crucial for lowering costs and ensuring equitable access for stakeholders.
The large-scale installation of hydrogen assets in Oman will require raw materials and components from adjacent industries. By involving SMEs in this process, Oman can enhance local economic participation and build a competitive domestic supply chain.
Additionally, Oman should prioritise building human capital through training programmes and academic partnerships to prepare its workforce for the demands of a green hydrogen economy. Awareness programs about green hydrogen projects can encourage local communities to participate actively. The Ministry of Higher Education, Research, and Innovation (Moheri) has already played a significant role by aligning university curricula with emerging market trends. By collaborating with leading international institutions through educational programmes, faculty exchanges, and research partnerships, Oman can position itself as a significant global player in the green hydrogen market.
The regulatory framework, higher education institutions, strong local SME involvement, and shared production infrastructure will be key to advancing Oman’s green hydrogen economy. Connectivity between governorates, integration of major companies, and access to strategically located ports will further support this transition.
Hydrom’s strategic approach, including partnerships, land allocations, and supportive policies, has been instrumental in mobilising both public and private investments. Rather than solely relying on development funds, Oman’s focus on strategic collaboration positions the nation as a regional leader in the emerging green hydrogen economy.
The road ahead is challenging, but with sustained innovation, inclusivity, and strategic collaboration, Oman’s green hydrogen vision has the potential to deliver transformative benefits for both the nation and the world.
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