Oman aims to become a global leader in green hydrogen production and export, using its strong renewable resources, strategic location and existing energy infrastructure. Green hydrogen is a core part of Oman Vision 2040 and the goal of net zero emissions by 2050, and it helps diversify the economy beyond oil and gas. To learn how green hydrogen is made, read the green hydrogen production process.
1. Green Hydrogen Production Targets
Oman’s national targets for green hydrogen production are:
- By 2030: 1.0–1.25 million tonnes per year (Mtpa).
- By 2040: 3.25–3.75 Mtpa.
- By 2050: 7.5–8.5 Mtpa.
Reaching the 2050 goal would almost double Oman’s current LNG exports in energy terms and give Oman a larger share of the global hydrogen market than it holds today in oil and gas.
2. Abundant Renewable Resources
Oman has world-class solar and wind resources:
- Solar: annual irradiation above 2,400 kWh/m² in the best areas.
- Wind: speeds of up to 11 m/s in the best areas. See Oman’s wind and solar potential.
Three main zones have been identified for large-scale renewable and hydrogen development: Duqm, Dhofar and Al Jazir. Together they cover about 50,000 km², with long-term potential for very large renewable capacity.
3. Location and Infrastructure
Oman sits between Africa, Europe and Asia, close to key hydrogen import markets in Europe, Japan and South Korea. It also has:
- Ports: Duqm, Sohar and Salalah have existing or planned ammonia and hydrogen facilities. Ammonia is expected to be the main form for shipping hydrogen by sea.
- Experience: long experience in handling and exporting LNG and ammonia.
- Existing infrastructure: some oil and gas infrastructure can be reused for low-emission fuels.
- Water: seawater desalination by reverse osmosis uses about 3–4 kWh per m³ and adds only a small share to the cost of hydrogen.
4. Building the Green Hydrogen Ecosystem
- Law and policy: Royal Decree 10/2023 governs the green hydrogen sector and sets a clear process for developers.
- Land allocation: land in Duqm, Dhofar and Al Jazir is allocated to green hydrogen projects through auctions.
- Auctions: Hydrom, a subsidiary of Energy Development Oman, runs the land auctions. Eight projects were awarded in the first two rounds, committing about 1.38 Mtpa of hydrogen by 2030 and more than US$49 billion of investment.
- Shared infrastructure: common power transmission, water and hydrogen pipelines and desalination are being planned for use by all projects.
- Local industry: opportunities include green ammonia, chemicals, refining, green steel and shipping fuel, plus manufacturing of equipment and components. Oman already uses about 1 million tonnes of hydrogen a year, mostly made from natural gas.
- Skills: programmes support innovation, training and long-term local jobs.
5. Investment and Economic Impact
- Investment: about US$140 billion of cumulative investment is expected in the sector up to 2050.
- Jobs: around 70,000 new permanent jobs are expected between 2030 and 2050.
- Diversification: building local supply chains and industries reduces reliance on hydrocarbon revenues.
6. Institutions and Milestones
- Hy-Fly national hydrogen alliance (August 2021): brings public and private organisations together to support hydrogen production, transport and use.
- Directorate General for Renewable Energy and Hydrogen (March 2022): created within the Ministry of Energy and Minerals.
- Hydrom (October 2022): the master planner of the sector, responsible for land, auctions and shared infrastructure.
Challenges and Outlook
Challenges remain, mainly the certainty of international demand and the time needed to scale export infrastructure. The IEA noted in 2023 that only a small share of planned export projects for 2030 had potential buyers. Even so, Oman’s low-cost renewables, clear regulations and strong institutions put it in a strong position to become a major global supplier.
Frequently Asked Questions
What is Oman’s green hydrogen target?
1.0–1.25 Mtpa by 2030, 3.25–3.75 Mtpa by 2040 and 7.5–8.5 Mtpa by 2050.
Who manages green hydrogen projects in Oman?
Hydrom, a subsidiary of Energy Development Oman, plans the sector, runs land auctions and coordinates shared infrastructure.
Where will green hydrogen be produced in Oman?
Mainly in Duqm, Dhofar and Al Jazir, with export through ports such as Duqm, Sohar and Salalah.
