Oman targets $140bn investment through green hydrogen strategy

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Oman’s Ministry of Energy and Minerals has unveiled its ‘Green Hydrogen Strategy’, which envisions an estimated $140 billion in investment in a new low-carbon energy industry.

The ministry established a new hydrogen-centric energy company, HYDROM, that will oversee the country’s growth of a green hydrogen-based energy future, the Oman Observer newspaper reported.

Oman has committed to reaching net-zero emissions in 2050, in line with the Paris Agreement’s objectives of limiting global warming to 1.5°C compared to pre-industrial levels.

Sultan Haitham bin Tariq has mandated the creation of the Oman Sustainability Centre, which will supervise and follow up plans and programmes for carbon neutrality.

Oman has set an ambition to become one of the world’s largest green hydrogen producers and exporters, targeting production of one million tonnes by 2030.

The development of the green hydrogen economy will provide a strategic opportunity for Omani and international companies to participate and collaborate in driving local and global energy security, economic diversification and climate change mitigation, the newspaper reported.

Abdulaziz Al Shaithani, director general of renewable energy and hydrogen, said that the green hydrogen-related investments will unlock investment opportunities across the value chain, such as solar panels, wind turbines, electrolysers, hydrogen-derived products, storage and transportation, water desalination and other components.

Oman’s investments alone will encompass about three million solar panels, approximately 10,000 wind turbines, 5,200 electrolysis units and about 180 GW of renewable energy production capacity.