Oman draws ambitious strategy to ensure development of green hydrogen economy
Published: 04:07 PM,Jul 05,2023 | EDITED : 08:07 PM,Jul 05,2023
BUSINESS REPORTER
MUSCAT, JULY 5
Eng Salim bin Nasser al Aufi, Oman’s Minister of Energy and Minerals, said the Ministry worked on drawing an ambitious strategy to ensure the development of the green hydrogen economy, in order to pave the way for companies to invest in that field, whereas the Sultanate of Oman strives to become one of the world pioneers in the production of green hydrogen.
In the Ministry’s Annual Report 2022 which was published yesterday, oil production in the Sultanate of Oman rose in 2022, with a daily average of 1.064 million barrels per day, compared to 971,000 barrels in 2021, with an increase of 9.6%. Furthermore, the Sultanate of Oman has maintained the same level of oil production in line with the production reduction agreement concluded with member states of the Organization of the Petroleum Exporting Countries (Opec) and other countries outside the organisation, which aim to achieving a balance between global supply and demand for oil.
The total production of electricity has reached in 2022 41.8 TWh with a net production of 40.4 TWh, with an increase of 2% compared to last year.
Moreover, the production of electricity further surged by 138% in comparison to 2021 due to continuing to operate Ibri 2 station owned by Shams Al Dhahira Generating Company.
Furthermore, the Ministry of Energy & Minerals, along with its partners, have made strenuous efforts in regulating the hydrogen sector in order to reach the highest levels of its aspired outcomes, whereas major steps have been taken by the Ministry to accelerate the procedures for regulating that sector, formulate the legal frameworks and policies needed for its development as well as study its production and storage sites, to attract and localize investments. Also, the Ministry announced the opportunities and incentives aimed at investing in green Hydrogen sector.
In keeping with this momentum in the renewable energy and hydrogen sector, the Ministry of Energy & Minerals organised the Green Hydrogen Summit in 2022 and participated in COP 27 in the Arab Republic of Egypt in order to strengthen the role of the Sultanate of Oman among the countries of the world in energy transformation plans towards reducing carbon emissions and to strike a balance between sustainable development and reducing the implications of climate change, which came out of the Carbon Management Laboratory supervised by the Ministry of Energy & Minerals in line with the steps taken by virtue of the high directives to promote Carbon Neutrality in 2050.
In the minerals sector, the total production of mineral ores in 2022 was about 63.6 million tons, recording a decrease of 8% compared to 2021, as the quantity of gypsum and building materials production fell by 6 million, which accounted for 79% of total production. This is due to the reduced demand on those materials.
Additionally, the total sales of minerals have reached 57.3 million tonnes, with a value of 98.974 Omani riyals Moreover, with regard to the In-Country Value (ICV), the Ministry of Energy and Minerals continues its efforts by enhancing the participation of local companies in contracts and procurement, as ”eTendering“ system has been activated by companies operating the supplier registration system (JSRS), to support small and medium- sized companies obtaining business in contracts with service companies and contractors.
The number of contracts awarded using e-tendering reached 242 contracts, not to mention the achievements pertaining to workforce localization and the supplier development programs in the petroleum and gas sector. Furthermore, in order to create the plans and initiatives that assistive to supporting the domestic companies and employ Omani cadres, a supervisory committee has been formed with the goal of governing the ICV for minerals sector, in addition to a work team dedicated to contracts, procurement and human resources.
Of the many projects of importance launched in 2022 is the OQ Liquified Petroleum Gas (OQ LPG) project in Salalah, which is considered to be the first gas processing facility of its kind in Oman, with an approximate total value of RO 318 million. This project came as one of the most important energy projects, as it contributes, by extracting liquid natural gas using gas lines and networks, in enhancing value chain of gas in the Sultanate. Additionally, Ibri 2 Solar Power Project has been launched, with a value of RO 155 approx ($400 million) and a 500 MW capacity.
The project, at the peak of its productive capacity, will be able to generate sufficient power for around 50,000 households to provide them with electricity, and will further contribute in reducing 340 thousand tons of CO2 emissions yearly.
MUSCAT, JULY 5
Eng Salim bin Nasser al Aufi, Oman’s Minister of Energy and Minerals, said the Ministry worked on drawing an ambitious strategy to ensure the development of the green hydrogen economy, in order to pave the way for companies to invest in that field, whereas the Sultanate of Oman strives to become one of the world pioneers in the production of green hydrogen.
In the Ministry’s Annual Report 2022 which was published yesterday, oil production in the Sultanate of Oman rose in 2022, with a daily average of 1.064 million barrels per day, compared to 971,000 barrels in 2021, with an increase of 9.6%. Furthermore, the Sultanate of Oman has maintained the same level of oil production in line with the production reduction agreement concluded with member states of the Organization of the Petroleum Exporting Countries (Opec) and other countries outside the organisation, which aim to achieving a balance between global supply and demand for oil.
The total production of electricity has reached in 2022 41.8 TWh with a net production of 40.4 TWh, with an increase of 2% compared to last year.
Moreover, the production of electricity further surged by 138% in comparison to 2021 due to continuing to operate Ibri 2 station owned by Shams Al Dhahira Generating Company.
Furthermore, the Ministry of Energy & Minerals, along with its partners, have made strenuous efforts in regulating the hydrogen sector in order to reach the highest levels of its aspired outcomes, whereas major steps have been taken by the Ministry to accelerate the procedures for regulating that sector, formulate the legal frameworks and policies needed for its development as well as study its production and storage sites, to attract and localize investments. Also, the Ministry announced the opportunities and incentives aimed at investing in green Hydrogen sector.
In keeping with this momentum in the renewable energy and hydrogen sector, the Ministry of Energy & Minerals organised the Green Hydrogen Summit in 2022 and participated in COP 27 in the Arab Republic of Egypt in order to strengthen the role of the Sultanate of Oman among the countries of the world in energy transformation plans towards reducing carbon emissions and to strike a balance between sustainable development and reducing the implications of climate change, which came out of the Carbon Management Laboratory supervised by the Ministry of Energy & Minerals in line with the steps taken by virtue of the high directives to promote Carbon Neutrality in 2050.
In the minerals sector, the total production of mineral ores in 2022 was about 63.6 million tons, recording a decrease of 8% compared to 2021, as the quantity of gypsum and building materials production fell by 6 million, which accounted for 79% of total production. This is due to the reduced demand on those materials.
Additionally, the total sales of minerals have reached 57.3 million tonnes, with a value of 98.974 Omani riyals Moreover, with regard to the In-Country Value (ICV), the Ministry of Energy and Minerals continues its efforts by enhancing the participation of local companies in contracts and procurement, as ”eTendering“ system has been activated by companies operating the supplier registration system (JSRS), to support small and medium- sized companies obtaining business in contracts with service companies and contractors.
The number of contracts awarded using e-tendering reached 242 contracts, not to mention the achievements pertaining to workforce localization and the supplier development programs in the petroleum and gas sector. Furthermore, in order to create the plans and initiatives that assistive to supporting the domestic companies and employ Omani cadres, a supervisory committee has been formed with the goal of governing the ICV for minerals sector, in addition to a work team dedicated to contracts, procurement and human resources.
Of the many projects of importance launched in 2022 is the OQ Liquified Petroleum Gas (OQ LPG) project in Salalah, which is considered to be the first gas processing facility of its kind in Oman, with an approximate total value of RO 318 million. This project came as one of the most important energy projects, as it contributes, by extracting liquid natural gas using gas lines and networks, in enhancing value chain of gas in the Sultanate. Additionally, Ibri 2 Solar Power Project has been launched, with a value of RO 155 approx ($400 million) and a 500 MW capacity.
The project, at the peak of its productive capacity, will be able to generate sufficient power for around 50,000 households to provide them with electricity, and will further contribute in reducing 340 thousand tons of CO2 emissions yearly.