Definition
Green hydrogen is hydrogen produced by electrolysis — passing an electrical current through water to split it into hydrogen (H₂) and oxygen (O₂) — where the electrical power comes entirely from renewable energy sources (solar, wind). This production process generates no greenhouse gas emissions, making green hydrogen a potential zero-carbon fuel and feedstock.
Why “Green”?
Hydrogen production currently uses a colour classification:
- Grey hydrogen: Produced from natural gas via steam methane reforming (SMR) — most common today, high CO₂ emissions
- Blue hydrogen: Grey hydrogen with Carbon Capture and Storage (CCS) — lower but not zero emissions
- Green hydrogen: Electrolysis using renewable electricity — zero direct emissions
- Pink/red hydrogen: Electrolysis using nuclear electricity
Green Ammonia
Hydrogen has a low energy density and is difficult to transport. A common solution is converting green hydrogen to green ammonia (NH₃) by combining it with nitrogen — which is more easily stored and shipped as a liquid. Green ammonia can be re-converted to hydrogen at destination or used directly as fuel or fertiliser feedstock.
Oman’s Green Hydrogen Strategy
Oman’s green hydrogen programme targets export of green hydrogen (primarily as ammonia) to European and Asian markets:
Competitive advantages: World-class solar resource, available land (Duqm), deep-water port (outside Hormuz), existing energy project expertise.
Key projects:
- Hyport Duqm: OQ-Shell-Uniper-Engie consortium; green ammonia for European export
- ACME Group: 2.5 GW electrolyser; targeting India and Europe
- Additional projects signed 2024/2025
Pipeline value: $30+ billion in development and MoU stage commitments.
Commercial Viability
Green hydrogen currently costs approximately $3-6/kg — 3-5x the price of grey hydrogen. Cost reduction depends on:
- Renewable electricity below $20/MWh (achievable in best solar locations)
- Electrolyser capital costs below $500/kW (improving rapidly with scale)
- Long-term off-take agreements providing revenue certainty for project finance
The timeline to cost competitiveness with grey hydrogen is uncertain but commonly estimated at 2030-2040 for the best-resourced locations — including Oman.