Oman is strategically positioning itself to become a global leader in green hydrogen production and export, leveraging its abundant renewable energy resources, strategic geographical location, and existing energy infrastructure. This ambitious transition is a core component of Oman Vision 2040, aiming for carbon neutrality by 2050 and diversifying the national economy beyond fossil fuels.
Key Themes and Facts:
1. Ambitious Green Hydrogen Production Targets
Oman has set clear and ambitious targets for green hydrogen production:
- By 2030: 1.0 – 1.5 million tonnes per annum (Mtpa).
- By 2040: 3.25 – 3.75 Mtpa.
- By 2050: 7.5 – 8.5 Mtpa.
These targets are substantial; achieving the 2050 goal would “almost double” Oman’s current Liquefied Natural Gas (LNG) exports in energy-equivalent terms and allow Oman to “capture 1.8% of the global hydrogen market,” exceeding its current contribution to global oil and natural gas supply.
2. Abundant Renewable Energy Resources
Oman is recognized as one of the “top countries for renewable resources,” possessing “world-class wind and solar irradiation profiles.”
- Solar PV potential: “Up to >2400 kWh/m2.”
- Wind speed: “Up to 11 m/s.”
Three primary areas identified for large-scale renewable energy development: Duqm, Dhofar, and Al-Jazir. These areas collectively span approximately “50,000 km2,” an area comparable to the size of Slovakia, with the potential to produce “25 Mt of hydrogen” annually from “500 GW of renewables.”
3. Strategic Geographical Location and Existing Infrastructure
Oman’s location at the “crossroads of Africa, Europe and India” provides a significant advantage for global hydrogen trade, particularly to key import markets like Europe and Asia (Japan, South Korea). The country also benefits from:
- Existing Port Infrastructure: Having ports like Duqm, Sohar, Salalah, Sur, and Muscat facilitates import and export operations. Specifically, Duqm, Salalah, and Sohar have existing or developing ammonia and hydrogen facilities, which are crucial for export given that “ammonia would represent the most common form for the export of hydrogen by sea in 2030.”
- Applicable Expertise: Oman has “extensive expertise in handling and exporting both LNG and ammonia that are directly applicable to renewable hydrogen and hydrogen-based fuels.”
- Repurposable Fossil Fuel Infrastructure: Existing oil and gas infrastructure can be “directly used or repurposed for low-emission fuels.”
- Water for Electrolysis: Despite being a water-stressed region, seawater desalination using reverse osmosis (requiring 3-4 kWh/m3 of water) is a viable option, with “only a minor impact on the total costs of water electrolysis.”
4. Comprehensive Green Hydrogen Ecosystem Development
Oman is actively building a supportive ecosystem for the green hydrogen sector. This involves:
- Policies and Regulations: “Clear process” and a “Royal decree RD 10/23 issued (governing the gH2 sector)” provide clarity and direction for the industry.
- Land Allocation: “50,000 km2 of land” has been designated for green hydrogen production projects, with significant areas specifically allocated in Duqm (increased from 100 sqkm to 150 sqkm in 2020) and Sohar Free Zone.
- Auction Process: Hydrom, a fully owned subsidiary of Energy Development Oman, is managing “hydrogen auctions” for land allocation. Eight projects have been awarded across two rounds, committing to “~1.38 Mtpa of H2 by 2030 with +49 B$ investments.” A third auction round for an additional 300 km2 in the Duqm region has been launched.
- Shared Infrastructure: Oman “expects to support gH2 projects making a shared infrastructure available for common use,” including “electricity transmission, water and H2 pipelines, desal[ination].” Master planning is finalized and pre-FEED activities are underway for shared infrastructure.
- Domestic Industry Development: Opportunities exist across the entire green hydrogen value chain, including “H2 Industrial use (Ammonia and other derivatives as energy carrier, Chemicals, Refining, Steel, Shipping)” and “H2 adjacent industry development (Material, components & equipment manufacturing).” This includes developing new industries like “green steel,” as demonstrated by SAAB’s announcement to buy green steel. Oman’s local consumption of hydrogen, mainly from natural gas, is about “1 million tonnes per year,” indicating significant potential for local production and consumption of clean hydrogen.
- Capacity and Skills Development: Efforts are underway to “support innovation and ensure capabilities development for Oman” and “create local long-term jobs.”
5. Significant Investment and Economic Impact
The transition to a green hydrogen economy in Oman is backed by substantial investment:
- Cumulative Investments: An estimated “$140B” (approximately 54 billion Omani Rials) in cumulative investments is projected for the green hydrogen sector until 2050.
- Job Creation: The sector is expected to create “~70k new permanent jobs” between 2030 and 2050, with ~17k being managerial positions.
- Economic Diversification: A core objective is to “diversify the local economy, onshore the supply chain, forward connect industries and create local long-term jobs,” thus reducing reliance on hydrocarbon revenues.
6. Institutional Framework and Milestones
Oman has rapidly established the institutional and legal framework to drive its green hydrogen strategy:
- National Hydrogen Alliance (Hy-Fly): Established in August 2021, this alliance gathers public and private organizations to “support and facilitate the production, transport, and utilisation of renewable hydrogen for domestic use and export.”
- Hydrogen Oman (HYDROM): Officially launched in October 2022, Hydrom is the “overall master planner of Oman’s green hydrogen sector,” responsible for land delineation, auction management, and facilitating infrastructure development.
- Directorate General for Renewable Energy & Hydrogen in MEM: Created in March 2022.
- Royal Directives for Hydrogen: Issued to “set the required strategy, policies and legal framework,” “allocate lands for gH2,” and “establish a company to develop the Hydrogen sector.”
Challenges and Future Outlook:
While Oman is making significant strides, challenges remain, particularly concerning international demand certainty and the scaling of transport infrastructure. As of April 2023, “only 17% of planned export projects for 2030 have potential off-takers,” and “infrastructure for transporting high trade volumes needs time to scale.” Nevertheless, Oman’s proactive approach, competitive production costs ($1.6/kg H2 by 2030), and commitment to fostering a comprehensive green hydrogen ecosystem position it strongly to become a major global player. The government is actively engaging with international stakeholders, and investor days are planned to further promote opportunities and secure partnerships.
Ref :
https://duqm.gov.om/upload/files/duqm_magazine25_greenhydrogen_en.pdf
https://erranet.org/wp-content/uploads/2025/05/S5P3_Al_Miamani_Green-Hydrogen-in-Oman_Oman2025.pdf
https://hydrom.om/Media/Pdf/Oman-Green-Hydrogen-Strategy-2024.pdf
https://iea.blob.core.windows.net/assets/338820b9-702a-48bd-b732-b0a43cda641b/RenewableHydrogenfromOman.pdf
