His Excellency Eng. Salim bin Nasser Al Aufi, Minister of Energy and Mineral, unveiled today the Sultanate of Oman’s new climate commitment and its ambitious green hydrogen strategy.
Under the leadership of His Majesty Sultan Haitham bin Tariq Al Said, 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. To lead its transition towards a green economy, His Majesty has mandated the creation of Oman Sustainability Centre. The centre will be the leading body undertaking the supervising and follow-up plans and programs of carbon neutrality.
His Excellency Eng. Salim bin Nasser Al Aufi, Minister of Energy and Minerals said “Oman is committed to decarbonize and help the world decarbonize. The pathway to net zero is an opportunity for Oman to create economic value, increase industrial competitiveness and attract investments to help diversify and strengthen the country’s economy.
Green hydrogen presents itself as a key vector that enables Oman to pursue its decarbonisation, economic and energy security objectives. With the abundant renewable energy resources Oman is blessed with and with the appropriate structuring of the sector via the creation of Hydrogen Oman as directed by His Majesty, Oman is positioned as one of the most attractive nations to produce green hydrogen competitively and at large-scale.”
Eng. Faiza Al Harthi, Head of Energy, Environment and Natural Resources Priority Support at Oman Vision 2040 Implementation Follow-up Unit said “The vision is to create effective, balanced, and resilient ecosystems to protect and sustain Oman’s natural resources in support of the national economy. This will be done by setting targets, a measurement mechanism and a follow-up methodology for the initiatives and projects helping to achieve net zero emissions”.
Eng. Abdulaziz Al Shidhani, Director General Renewable Energy and Hydrogen said “Oman aims to become one of world’s leading green hydrogen hubs. Over the last few months, the Ministry of Energy and Minerals has developed an ambitious green hydrogen strategy and defined the structure of the green hydrogen sector. 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 much needed climate change mitigation.”
Eng. Mazin Al Lamki Chief Executive Officer of Energy Development Oman said “We are delighted to announce the new brand identity of HYDROM, a fully owned autonomous subsidiary of EDO. Working in tandem with the ambitious Government plans, HYDROM will leverage the Sultanate of Oman’s location and abundant solar and wind resources to produce green hydrogen and support the government’s drive to reduce the carbon footprint and achieve the decarbonization targets”.
Dr. Firas Al Abduwani Acting Managing Director of HYDROM said “We at HYDROM look forward to working with international partners to build the future of energy. The bid round we announced today is the first of its kind globally and we are convinced it will help accelerate the development of the green hydrogen industry in Oman and globally”.
These new ambitious sustainability initiatives come a few weeks before COP27 in Egypt, in which Oman is set to take part.
Al-Khuwair, Ministry Streets, Opposite Sultan Qaboos Street Muscat - Sultanate of Oman View in Map
Under the leadership of His Majesty Sultan Haitham bin Tariq Al Said, The Sultanate 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. Oman reaffirmed its commitment towards the Net Zero goals by unveiling the Sultanate's National Net Zero Plan and an ambitious green hydrogen strategy. To fulfill this commitment, the Sultanate has taken several steps towards diversifying its energy resources to achieve the energy transition. One of these achievements is the development of the Energy Transition Policy.
The Energy Transition Policy project is being developed under the supervision of the Ministry of Energy and Minerals (MEM), in cooperation with different public entities. It will outline the National Energy Transition Policy outlook and implementation plan.
Oman is blessed with good renewable energy resources that enable the country to attract large-scale renewable energy projects for electricity generation and green hydrogen production. The policy will define the roadmap to progress the energy transition strategic objectives and integration with existing energy supply chains in relation to energy transition key drivers including green hydrogen CCUS, Energy efficiency and renewable energy.
The initial step of this project was to define Oman's Energy Transition Vision which states that Oman shall fulfil Net Zero by 2050 while ensuring energy security & competitiveness, growth in low carbon economy, and value to society. This will propel Oman toward its Vision 2040 economic growth and diversification objectives. It can be realized through the use of renewable energy as a primary energy source, a globally competitive energy sector, the use of carbon capture for decarbonization, the production of large quantities of low-carbon hydrogen to drive exports and growth in low-carbon industry, widespread improvements in energy efficiency, and the electrification of transportation and industry.
Oman''s high-quality renewable energy resources and vast tracts of available land make it well placed to produce large quantities of low-emissions hydrogen – a fledgling industry today that can attract investment to diversify and expand the country''s export revenues while reducing its natural gas consumption and emissions, according to a new IEA report released today.
IEA Executive Director Fatih Birol presented the new report, Renewable Hydrogen from Oman: A Producer Economy in Transition, to Oman''s Minister of Energy and Minerals Salim Al Aufi during a roundtable meeting with senior IEA leaders and analysts at the Agency''s headquarters in Paris. It is the first IEA report of its kind that analyses renewable hydrogen potential in a fossil fuel producer country. The analysis builds on the IEA''s ongoing technical cooperation with Oman to support the country''s clean energy transition.
Oman aims to produce at least 1 million tons of renewable hydrogen a year by 2030, up to 3.75 million tonnes by 2040 – and up to 8.5 million tonnes by 2050, which would be greater than total hydrogen demand in Europe today. The 2040 hydrogen target would represent 80% of Oman''s current LNG exports in energy-equivalent terms, while achieving the 2050 target would almost double them.
"Oman is an oil and gas producer country that is taking an enlightened approach to its energy future, with a clear long-term vision and strong net zero ambitions," said Dr Birol. "Thanks to its huge potential for low-cost solar and wind, renewable hydrogen is set to bring multiple benefits to Oman. The IEA is very pleased to be working with Oman on policy and technical matters as the country moves ahead on its journey to a net zero economy and shows other producer countries what is possible."
"From an energy perspective, Oman is better known for being an oil and gas developer, however it is also blessed with globally competitive solar and wind energy resources, and the most economically rational action for us is to embark on using this as the most viable and sustainable energy of tomorrow, including decarbonising the power generation, local industry and hydrogen production for export," said Minister Al Aufi. "We''re pleased to be working with the IEA on key aspects of our transition and are very encouraged by the insights offered by this report."
Oil and gas today represent around 60% of Oman''s export income, and domestic natural gas accounts for over 95% of the country''s electricity generation. In 2022, Oman announced a target to achieve net zero emissions by 2050 and began reducing fossil fuel use in its domestic energy mix.Based on IEA analysis of the current global project pipeline, Oman is on track to become the sixth largest exporter of hydrogen globally, and the largest in the Middle East, by 2030.
Oman''s hydrogen projects will use electrolysers powered by renewable electricity to extract hydrogen from desalinated sea water. Oman benefits from high-quality solar PV and onshore wind resources, as well as vast amounts of available land for large-scale projects. It is also conveniently situated along important market routes between Europe and Asia, with existing fossil fuel infrastructure that can be used or repurposed for low-emissions fuels. Oman has extensive expertise in handling and exporting both LNG and ammonia that is directly applicable to renewable hydrogen and hydrogen-based fuels.
Oman is implementing concrete measures to achieve its ambitious targets. In 2022, the government established an independent entity, Hydrogen Oman (HYDROM), to lead and manage its hydrogen strategy. So far, 1 500 square kilometres of land has been put aside for development by 2030 – and up to 40 times more land has been identified for potential production in the long term. Six projects have already been allocated land for renewable hydrogen in the country''s first such auction process.
Oman''s renewable hydrogen exports are likely to be transported initially in the form of ammonia, the report says. While Oman already exports around 200 000 tonnes of ammonia a year, its ammonia export capacity would need to be 20 to 30 times higher by 2030 if it wants to become a significant international hydrogen supplier in that timeframe, requiring significant and timely investment, especially for storage tanks and dedicated deepwater jetties.
Meeting Oman''s hydrogen targets will require a massive increase of renewable power, with around 50 terawatt-hours of electricity needed to meet the 2030 target, greater than the current size of the country''s entire electricity system. This is expected to further accelerate cost reductions and benefit the country''s power system as well. Based on recently awarded bid prices in the region, utility solar PV and wind are likely already competitive with electricity generation from natural gas in Oman. The IEA report''s analysis indicates that Oman can cost-effectively achieve its targets of renewables reaching 20% of the country''s electricity mix by 2030 – and 39% by 2040.
Scaling up production of renewable hydrogen in Oman to 1 million tonnes by 2030 would require cumulative investment of around USD 33 billion. An additional USD 4 billion would be required to bring renewables'' share of the national electricity mix to 20%, the report says. Achieving its targets and using one-third of renewable hydrogen for domestic uses would significantly contribute to Oman''s clean energy transition. The benefits would include reducing domestic use of natural gas by 3 billion cubic metres a year and avoiding 7 million tonnes of carbon dioxide emissions.
About Renewable electricity oman
As the photovoltaic (PV) industry continues to evolve, advancements in Renewable electricity oman have become critical to optimizing the utilization of renewable energy sources. From innovative battery technologies to intelligent energy management systems, these solutions are transforming the way we store and distribute solar-generated electricity.
When you're looking for the latest and most efficient Renewable electricity oman for your PV project, our website offers a comprehensive selection of cutting-edge products designed to meet your specific requirements. Whether you're a renewable energy developer, utility company, or commercial enterprise looking to reduce your carbon footprint, we have the solutions to help you harness the full potential of solar energy.
By interacting with our online customer service, you'll gain a deep understanding of the various Renewable electricity oman featured in our extensive catalog, such as high-efficiency storage batteries and intelligent energy management systems, and how they work together to provide a stable and reliable power supply for your PV projects.
Related Contents
