Overview
Oman is positioning itself as a major hydrogen producer, with both green and blue hydrogen pathways under development. The choice between these technologies has significant implications for investment requirements, emissions profiles, and long-term competitiveness.
Green Hydrogen in Oman
Green hydrogen is produced through electrolysis of water using renewable electricity. Oman has announced several major green hydrogen projects, including the ACME project in Duqm and the Hyport Duqm initiative. Oman’s abundant solar and wind resources provide competitive renewable electricity for electrolysis. Green hydrogen produces zero direct carbon emissions and aligns with global decarbonisation goals. However, capital costs remain high, and large-scale production requires significant renewable energy infrastructure.
Blue Hydrogen in Oman
Blue hydrogen is produced from natural gas through steam methane reforming, with carbon dioxide captured and stored underground. Oman’s existing gas infrastructure and depleted oil reservoirs suitable for carbon storage make blue hydrogen technically feasible. Blue hydrogen can be produced at larger scale today using existing technology. However, it remains dependent on fossil fuel feedstock and carbon capture rates below 100 percent mean residual emissions persist.
Key Differences
Green hydrogen has zero direct emissions but higher current costs and requires new renewable infrastructure. Blue hydrogen leverages existing gas assets and is cheaper today but has residual emissions and fossil fuel dependence. Green hydrogen costs are falling rapidly, while blue hydrogen faces potential carbon pricing risks. Green hydrogen aligns better with long-term market preferences.
Verdict / Bottom Line
Oman should pursue a dual strategy, developing blue hydrogen near-term to capture market share while building green hydrogen capacity for long-term competitiveness. As renewable energy costs continue declining, the balance should shift increasingly toward green hydrogen. Oman’s natural advantages in both pathways give it strategic flexibility.