Hydrogen markets in Oman
Published: 10:02 AM,Feb 28,2023 | EDITED : 02:02 PM,Feb 28,2023
Hydrogen is a clean and renewable source of energy that is gaining popularity in the world as countries try to reduce their dependency on fossil fuels. The hydrogen market in Oman is relatively new but has the potential to play a significant role in the country's energy mix in the future.
Oman plans to produce a million tons of green hydrogen by 2030 and has set up a state-owned company, Hydrom as part of its plan to achieve net-zero carbon emissions by 2050. The country has ambitious plans to increase its use of renewable energy setting a target of generating 10% energy from renewable sources by 2025, hydrogen being a key component of these plans.
Looking on the demand side, while the transportation sector is expected to be the main market using hydrogen fuel cell vehicles, there will emerge a growing industrial market, for hydrogen to be used as a feedstock to produce chemicals, such as ammonia and methanol. At present, there are few hydrogen refueling stations in the country, which makes it difficult to use hydrogen as a fuel for transportation thus making it difficult for consumers to switch to hydrogen-powered vehicles and with the increased used of hydrogen as a feedstock, manufacturers can reduce dependence on traditional fossil fuels and lower carbon footprint. Oman has earmarked two blocks in the southern port city of Duqm and another four blocks in Salalah to be tendered for the development of green hydrogen projects.
Another challenge is the high cost of production, transportation, and storage. Majority of hydrogen (blue hydrogen) produced is from natural gas, which is a fossil fuel making hydrogen relatively expensive compared to other sources of energy. Hydrogen is mostly transported by trucks, which is less efficient and more expensive than pipelines. However, as technology advances and renewable sources of energy are used to produce hydrogen, it is likely that the cost of production will decrease, making it more accessible to consumers. Green Energy Oman (GEO) is a promising clean fuels hub sited in the southern region of Oman in Al Wusta and Dhofar governorates to utilize Oman’s natural resources of wind and sun to turn seawater into green fuels: hydrogen, ammonia, methanol, and synthetic fuels. Additionally, the project has potential to supply the local economy with cheap clean power.
Oman’s hydrogen market is expected to grow significantly in the coming years. The country overlooked by waterbodies has a large amount of sunshine and high temperatures, which makes it an ideal location for producing hydrogen. Additionally, the increased efforts to welcome foreign experts and knowledge sharing to develop the green hydrogen market, is a positive sign for the future of this industry. As the comprehensive infrastructure for hydrogen production and distribution keeps maturing, it is likely that with the right policies and investments, the Sultanates hydrogen market will play a significant role in the country's energy mix, help reduce its dependence on fossil fuels and be sustainable in the long term.
[Alena Dique is listed as one of the Top 100 Successful Women in Oman and amongst the Top 10 National Gamechangers of the Sultanate. She is the author of Sustainable Governance part of the Omani Corporate Governance Guide. A Sustainable Development and Energy Transition Consultant (Oman and UAE) by profession with a degree in Quantitative Statistics, she holds a Scholastic award and MBA from University of Wales. Email: dique.alena@gmail.com]
Oman plans to produce a million tons of green hydrogen by 2030 and has set up a state-owned company, Hydrom as part of its plan to achieve net-zero carbon emissions by 2050. The country has ambitious plans to increase its use of renewable energy setting a target of generating 10% energy from renewable sources by 2025, hydrogen being a key component of these plans.
Looking on the demand side, while the transportation sector is expected to be the main market using hydrogen fuel cell vehicles, there will emerge a growing industrial market, for hydrogen to be used as a feedstock to produce chemicals, such as ammonia and methanol. At present, there are few hydrogen refueling stations in the country, which makes it difficult to use hydrogen as a fuel for transportation thus making it difficult for consumers to switch to hydrogen-powered vehicles and with the increased used of hydrogen as a feedstock, manufacturers can reduce dependence on traditional fossil fuels and lower carbon footprint. Oman has earmarked two blocks in the southern port city of Duqm and another four blocks in Salalah to be tendered for the development of green hydrogen projects.
Another challenge is the high cost of production, transportation, and storage. Majority of hydrogen (blue hydrogen) produced is from natural gas, which is a fossil fuel making hydrogen relatively expensive compared to other sources of energy. Hydrogen is mostly transported by trucks, which is less efficient and more expensive than pipelines. However, as technology advances and renewable sources of energy are used to produce hydrogen, it is likely that the cost of production will decrease, making it more accessible to consumers. Green Energy Oman (GEO) is a promising clean fuels hub sited in the southern region of Oman in Al Wusta and Dhofar governorates to utilize Oman’s natural resources of wind and sun to turn seawater into green fuels: hydrogen, ammonia, methanol, and synthetic fuels. Additionally, the project has potential to supply the local economy with cheap clean power.
Oman’s hydrogen market is expected to grow significantly in the coming years. The country overlooked by waterbodies has a large amount of sunshine and high temperatures, which makes it an ideal location for producing hydrogen. Additionally, the increased efforts to welcome foreign experts and knowledge sharing to develop the green hydrogen market, is a positive sign for the future of this industry. As the comprehensive infrastructure for hydrogen production and distribution keeps maturing, it is likely that with the right policies and investments, the Sultanates hydrogen market will play a significant role in the country's energy mix, help reduce its dependence on fossil fuels and be sustainable in the long term.
[Alena Dique is listed as one of the Top 100 Successful Women in Oman and amongst the Top 10 National Gamechangers of the Sultanate. She is the author of Sustainable Governance part of the Omani Corporate Governance Guide. A Sustainable Development and Energy Transition Consultant (Oman and UAE) by profession with a degree in Quantitative Statistics, she holds a Scholastic award and MBA from University of Wales. Email: dique.alena@gmail.com]