ABU DHABI: The Sultanate of Oman is considered one of the leading countries in the field of renewable energy, having made significant progress in developing green hydrogen projects by leveraging its strategic location and natural resources. The cooperation between Oman and the United Arab Emirates reflects the depth of the economic and strategic relations between the two countries, particularly in the energy and heavy industries sectors.
In this context, Mohammad Abdelqader el Ramahi, Chief Green Hydrogen Officer at Masdar, emphasised the importance of expanding joint investments between the two countries, especially in green hydrogen sectors, to enhance Oman’s position as a regional hub for clean and sustainable energy.
El Ramahi highlighted the depth of the strategic relations and mutual interests between Oman and the UAE, noting that this relationship is characterised by brotherhood and economic integration. This drives both parties to strengthen cooperation across various vital sectors.
He explained that the UAE’s presence in the Omani market extends to several major industrial sectors through Abu Dhabi Developmental Holding Company, which owns Taqa company. He added that there is growing interest in developing iron, steel, and aluminium industries, in addition to enhancing production capacities for renewable energy sources, particularly in the green hydrogen sector.
El Ramahi pointed out that Oman has made advanced strides in the green hydrogen sector compared to other countries in the region. Oman was proactive in allocating the necessary lands for projects, especially at Duqm Port, which is one of the most supportive ports for this sector. He confirmed that Oman has completed the necessary regulatory frameworks and has already announced a series of projects with global strategic partners. This reflects the Sultanate’s seriousness in implementing real projects rather than merely signing agreements or making promotional announcements. He clarified that these projects adhere to strict economic and commercial standards, making them more mature and developed than similar projects in the region.
El Ramahi also referred to a strategic agreement signed during the recent visit of His Majesty Sultan Haitham bin Tarik to the UAE. This agreement paves the way for extensive cooperation between the two governments in developing large-scale projects in renewable energy and green hydrogen. He added that this agreement will contribute to attracting significant Emirati investments to Oman, especially in industrial sectors such as iron and aluminium, reinforcing Oman’s position as a regional investment destination in the energy sector.
Speaking about the global green hydrogen sector, El Ramahi explained that the sector is currently experiencing a "big bubble," where many investors have rushed into the market with expectations of massive production capacities. However, the sector remains in its early developmental stages. He confirmed that factories producing electrolyzers—the core equipment for hydrogen production—still have limited production capacities.
Additionally, the cost of producing green hydrogen remains high and economically unfeasible due to the absence of clear and strict regulatory frameworks to support this sector, whether through imposing fines on carbon emissions or providing incentives for consumers to use green hydrogen.
El Ramahi affirmed that Oman possesses a unique competitive advantage that qualifies it to be at the forefront of green hydrogen-producing and exporting countries in the coming years. He noted that the Sultanate has already begun implementing projects on the ground at advanced development stages, reflecting its commitment to achieving its goals in clean and renewable energy.
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