Overview
Green hydrogen has emerged as one of Oman’s most significant investment opportunities, with the Sultanate positioning itself as a leading global producer and exporter of green hydrogen and its derivatives. The national hydrogen strategy leverages Oman’s abundant solar and wind resources, extensive land availability, and existing energy infrastructure to develop large-scale green hydrogen production facilities. The Oman Hydrogen Centre, established under the Ministry of Energy and Minerals, coordinates national hydrogen strategy, policy development, and project facilitation. Multiple large-scale green hydrogen projects have been announced, with combined investment values exceeding tens of billions of US dollars. The initiative represents a cornerstone of Oman’s energy transition and long-term economic diversification ambitions.
Key Facts
Oman targets production of at least one million tonnes of green hydrogen annually by 2030, with plans to scale further by 2040. The country’s solar irradiance exceeds 2,000 kilowatt-hours per square metre annually, among the highest in the world. Wind resources in southern Oman provide complementary renewable energy capacity for hydrogen production. Designated hydrogen production zones have been identified in Duqm, Salalah, and other locations with optimal renewable energy resources. Green ammonia, produced from green hydrogen, is the primary export product targeting fertiliser and shipping fuel markets. International partnerships with European, Asian, and North American companies are driving project development.
Regulatory Framework
The Oman Hydrogen Centre provides the institutional framework for hydrogen sector governance and investment promotion. Hydrogen production projects require environmental impact assessments, land allocation approvals, and grid connection agreements. Water desalination permits are required for the freshwater input needed for electrolysis. Export infrastructure including pipeline, storage, and port facilities are being developed as part of integrated project planning. Safety and technical standards for hydrogen production, storage, and transport are being established in alignment with international practices.
Opportunities
First-mover advantages are available in a rapidly emerging global hydrogen market. Long-term offtake agreements with European and Asian buyers provide revenue certainty for hydrogen projects. Equipment manufacturing for electrolysers, renewable energy components, and balance-of-plant offers supply chain investment opportunities. Research and development collaboration with international institutions supports technology advancement. Carbon credit generation from green hydrogen production can provide additional revenue streams.
Considerations
Green hydrogen technology is capital-intensive and requires significant upfront investment in renewable energy and electrolyser capacity. Project economics depend on the cost trajectory of electrolysers, renewable energy, and competing hydrogen production methods. Water availability for electrolysis requires investment in desalination infrastructure. Export logistics for hydrogen and ammonia require specialised port and shipping infrastructure. Policy and regulatory certainty, including long-term incentive commitments, is important for securing project finance.