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Oman

Oman, a country located in the Middle East, has a strong interest in hydrogen and green hydrogen as potential sources of clean energy. Oman has long relied on hydrocarbons for the vast majority of its domestic energy mix. In 2021, gas was the source of 71 percent of energy consumed in the country, while oil accounted for 28 percent. Coal and renewable sources provided less than 1 percent combined. Oman’s current targets that renewables should constitute 30 percent of its energy mix by 2030. Solar energy has significant potential in Oman due to its abundant sunlight.

Overall, while the development of hydrogen and green hydrogen in Oman is still in its early stages, the country has shown a strong commitment to promoting these clean energy sources. With its significant natural gas reserves and potential for renewable energy.

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General Information

As of 2021, the demand for hydrogen and green hydrogen in Oman is relatively low, with hydrogen mainly used in industrial processes and as a fuel for some vehicles. However, there is growing interest in the potential for hydrogen and green hydrogen as a clean energy source in the country. Oman's industrial sector is the main consumer of hydrogen in the country. Hydrogen is used in the production of ammonia and other chemicals, as well as in the oil refining process. Oman is a major exporter of liquefied natural gas (LNG) and has the potential to export hydrogen in the future. There are plans to develop a hydrogen liquefaction plant in the country to support the export of hydrogen.

In 2019, Oman launched its National Energy Strategy, which includes a focus on renewable energy and clean hydrogen. The strategy aims to increase the share of renewable energy in the country's energy mix to 10 Percent by 2025 and 30 Percent by 2040.

Oman is currently in the process of developing a regulatory framework for hydrogen and green hydrogen. The regulatory framework will address issues such as safety, technical standards, and licensing requirements for hydrogen projects. Here are some of the key elements of the regulatory framework for hydrogen in Oman:

  • Safety Standards: The regulatory framework will include safety standards for the production, storage, transport, and use of hydrogen. These standards will be based on international best practices and will help ensure the safe and reliable operation of hydrogen projects in Oman.
  • Licensing Requirements: The regulatory framework will establish licensing requirements for hydrogen projects in Oman. Companies will need to obtain licenses from the relevant regulatory authorities before starting hydrogen projects.
  • Technical Standards: The regulatory framework will establish technical standards for the production, storage, transport, and use of hydrogen. These standards will cover issues such as equipment design, materials, and testing procedures.
  • Environmental Regulations: The regulatory framework will include environmental regulations for hydrogen projects. These regulations will ensure that hydrogen projects in Oman are developed in an environmentally sustainable manner.
  • Research and Development: The regulatory framework will also support research and development activities related to hydrogen and green hydrogen. This will help drive innovation and support the development of new technologies for hydrogen production, storage, and use.

INFRASTRUCTURE

While the demand for hydrogen and green hydrogen in Oman is currently limited, the country has significant potential to develop a hydrogen economy in the future. Oman stands to benefit from renewable sources of energy including green hydrogen. With immense solar radiation, and wind speed coupled with adequate land, easy access to water and free zones for manufacturing, Oman is well placed to transition to a green hydrogen economy.

Renewable Energy Projects: Oman is also investing in renewable energy projects, such as solar and wind power, which could be used to produce green hydrogen in the future. Oman’s National Energy Strategy aims to derive 30 percent of electricity from renewable sources by 2030. One of the objectives of Oman Vision 2040 and the National Energy Strategy is to derive at least 30% of electricity from renewables by 2030. These projects include a wind farm in Dhofar; two solar IPPs in Manah; 11 solar-diesel hybrid facilities; and the ‘Sahim’ initiative to install small-scale solar panels on residential and commercial buildings, among others.

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The hydrogen projects that are currently being developed in Oman:

  • Green Hydrogen Pilot Project: In 2021, the Oman Power and Water Procurement Company issued a request for proposals for a green hydrogen pilot project, which will be developed in partnership with the Oman Oil Company. The pilot project aims to produce green hydrogen using renewable energy sources, such as solar and wind power.
  • Hydrogen-Powered Buses: In 2019, Oman's Ministry of Transport and Communications launched a project to deploy hydrogen-powered buses for public transportation in Muscat, the capital city. The project is part of the country's efforts to promote the use of hydrogen as a clean fuel for transportation.
  • HyPort Duqm: The high-profile project is a partnership from December 2021, between OQ, Germany’s Uniper and Belgium’s DEME, which aims to build a green hydrogen/ammonia facility at Duqm, powered by 1.3GW of renewable energy with wind and solar plants. It is planned within the Special Economic Zone at Duqm (Sezad) in an area of about 150 square kilometres and will operate a 500 MW electrolyser to produce an estimated 60,000 metric tonnes per annum of green hydrogen. This will yield 330,000 metric tonnes per annum of green ammonia for export. A final investment decision (FID) on Hyport Duqm is slated during 2023, with Phase 1 of the project targeted for start-up in 2026.
  • SalalaH2: Announced in October 2021, the project was announced for the coastal city of Salalah by co-developers OQ, industrial gases company Linde and the Dubai Transport Company. About 1GW of wind and solar will power a 400MW of electrolysers, which will feed an existing ammonia production plant owned & operated by OQ (the plant currently relies on gas as a feedstock). A $1 billion is being invested by the companies towards this.
  • ACME: Indian renewables developer ACME won a $3.5 billion bid in August 2021 to build one of the world’s largest green ammonia projects at Oman’s Port of Duqm, using hydrogen electrolysers powered by 3GW of solar and 500MW of wind power. The full-scale plant would produce about 900,000 tonnes of green ammonia annually.
  • BP Project: Earlier in January 2022, Oman’s Ministry of Energy and Minerals signed a strategic framework agreement with the British energy giant, BP to deliver a multiple-GW renewable energy and green hydrogen project by 2030. BP will capture and evaluate solar and wind data from 8,000 sq. km of land.
  • Worley Project: In April 2022, Green Energy Oman (GEO), an international consortium, has approached Worley to support their support their 25-gigawatt (GW) solar and wind powered green hydrogen Project. The overall project aims to produce over 1.8 million tons of low-carbon green hydrogen which can produce up to 10 million tons of green ammonia per annum, supporting the local economy and global markets.

Overall, while Oman is still in the early stages of developing its hydrogen and green hydrogen infrastructure, the country is taking steps to promote the development of these technologies through research and development activities and pilot projects.