To bolster its net-zero ambitions, Oman has recently inked agreements for green hydrogen projects worth $10 billion.
Oman has taken significant strides in advancing its net-zero ambitions by signing agreements worth $10 billion for green hydrogen projects. Oman’s Hydrom, in collaboration with a consortium comprising South Korea’s Posco and French firm Engie, as well as the Hyport Duqm initiative, has secured the deals. The new projects will be located in the Al-Wusta governorate, according to Oman News Agency, further propelling the country’s commitment to sustainable energy production.
With the latest agreements, Oman has now awarded a total of five large-scale green hydrogen projects, representing an investment of over $30 billion. These projects are expected to have a combined annual production capacity of 750,000 tons. The contracts align with Oman’s strategic plan to produce over 1 million tons of green hydrogen annually by 2030, with a further increase to 8 million tons by 2050. Achieving these targets will necessitate a cumulative investment value of $140 billion.
The signing of these agreements reflects Oman’s determination to establish a prominent position in the global green hydrogen sector, in line with its energy transformation strategy. Salim bin Nasser Al-Aufi, Oman’s Minister of Energy and Minerals, expressed satisfaction with the new deals and emphasized their significance. He stated, “The fast-paced efforts behind the announcement of these new projects reflect Oman’s commitment to reinforce its leading position in the global green hydrogen sector in line with its energy transformation strategy.”
In addition to the recent agreements, Hydrom launched the second bid round of its auction process during the event. This auction process allows companies to submit investment proposals for developing more large-scale green hydrogen projects. The focus of this round will be on land blocks in the governorate of Dhofar. The auction is expected to conclude by the end of the first quarter of 2024. This initiative aims to attract additional investments, drive innovation, and expand the green hydrogen sector within Oman.
The development of green hydrogen projects in Oman brings forth the potential for sustainable economic growth and job creation. With significant investments pouring into the sector, there will be a surge in employment opportunities, particularly in the fields of engineering, manufacturing, and research and development. The growth of the green hydrogen industry will stimulate various ancillary sectors, fostering economic diversification and contributing to Oman’s long-term sustainability.
Oman’s collaborations with prestigious international companies, such as Posco and Engie, highlight the nation’s commitment to fostering global partnerships and accessing expertise in the green hydrogen sector. These partnerships will facilitate knowledge exchange, technology transfer, and best practices, ultimately enhancing Oman’s capabilities in green hydrogen production. By leveraging the expertise of international partners, Oman can accelerate its transition towards a greener and more sustainable energy landscape.
Oman’s recent agreements for green hydrogen projects, valued at $10 billion, mark a significant milestone in the country’s journey towards achieving its net-zero ambitions. With a clear roadmap to increase green hydrogen production, Oman is positioning itself as a leader in the global green hydrogen sector. The investments will not only drive economic growth but also contribute to job creation, technological innovation, and environmental sustainability. Oman’s strategic focus on the green hydrogen industry underscores its commitment to a greener future and paves the way for a sustainable energy landscape in the years to come.
