Oman’s role in the future of sustainable ammonia production
With mounting international pressure to decarbonise production processes and the increasing volatility of fossil fuel markets, the Sultanate of Oman has a chance to position itself as a leader in low-carbon ammonia production while reinforcing its role as a key supplier to global agricultural markets.
Published: 04:02 PM,Feb 22,2025 | EDITED : 08:02 PM,Feb 22,2025
As the world transitions towards more sustainable agricultural practices, ammonia — a key ingredient in nitrogen fertilisers — has come under scrutiny due to its high carbon footprint. Oman, a significant exporter of ammonia-based fertilisers, stands at the crossroads of opportunity and responsibility in this global shift. With mounting international pressure to decarbonise production processes and the increasing volatility of fossil fuel markets, the Sultanate of Oman has a chance to position itself as a leader in low-carbon ammonia production while reinforcing its role as a key supplier to global agricultural markets.
Oman plays a crucial role in the global fertiliser supply chain, particularly in the Middle East, which is categorised as a net exporter of ammonia-based fertilisers. The Sultanate of Oman’s ammonia exports are particularly significant for India, one of the world’s largest consumers of nitrogen fertilisers, reinforcing strong trade ties that ensure food security for millions.
The country benefits from its strategic location and well-established port infrastructure, which facilitates efficient transportation of fertilisers to key markets. However, as the ammonia industry faces increasing regulatory and environmental pressures, Oman must consider the future of its production methods to maintain competitiveness.
The sustainability challenge
Ammonia production is energy-intensive, with the global industry contributing approximately 1.3% of total greenhouse gas emissions due to its reliance on natural gas. While natural gas has long been the dominant feedstock, reliance on fossil fuels exposes Oman to price fluctuations, supply chain disruptions and international climate policies that may impose stricter carbon reduction targets.
With global commitments to achieving net-zero emissions by mid-century, the ammonia industry is at a pivotal moment. Major importers, including the European Union, are increasingly prioritising low-carbon ammonia sources, and future trade agreements may require cleaner production processes. This presents a critical question for Oman: How can the country continue to lead in ammonia exports while reducing its environmental impact?
Opportunities in low-carbon ammonia
A new Low Carbon Ammonia for Sustainable Agriculture report outlines three primary alternatives to traditional ammonia production:
1. Carbon Capture and Storage (CCS): CCS can reduce ammonia-related emissions by up to 70% while maintaining reliance on natural gas. Oman’s existing oil and gas infrastructure makes it well-suited for integrating CCS into its industrial sector. By leveraging its expertise in enhanced oil recovery and underground carbon storage, the country could significantly cut emissions while continuing production.
2. Green Hydrogen and Electrolysis-Based Ammonia: Electrolysis-based ammonia production, powered by renewable energy, eliminates carbon emissions from the process. Oman’s substantial investments in green hydrogen, including large-scale projects backed by international investors, indicate a readiness to transition towards clean ammonia production. Although electrolytic ammonia remains costlier than traditional methods, declining renewable energy costs and potential subsidies could make it more viable in the near future.
3. Biochemical Ammonia Production Using Biomass: Biomass-derived ammonia could further reduce fossil fuel dependency, but it requires significant land and water resources, making it less feasible for Oman given its arid climate.
Policy and Strategic Recommendations
To solidify its role in the future of ammonia production, Oman should adopt a phased approach towards decarbonisation.
• Strengthening Green Hydrogen Initiatives: Oman’s existing hydrogen projects should integrate ammonia production to supply low-carbon fertilisers to global markets.
• Developing Carbon Capture and Storage (CCS) Capabilities: By investing in CCS, Oman can continue leveraging its natural gas reserves while complying with global decarbonisation standards.
• Expanding Renewable Energy Capacity: Solar and wind energy can power ammonia plants, reducing reliance on fossil fuels. With abundant solar resources, Oman has a strategic advantage in this transition.
• Aligning with Global Regulations: Oman must anticipate future carbon regulations and secure agreements with key trading partners to ensure continued market access for its ammonia exports.
Conclusion
Oman’s ammonia sector is at a turning point. As the global fertiliser industry moves towards sustainability, the Sultanate of Oman has a golden opportunity to lead rather than follow. By integrating carbon capture, green hydrogen and renewable energy into its ammonia production framework, Oman can maintain its position as a leading exporter while ensuring long-term environmental and economic resilience.
The transition to low-carbon ammonia is not just a necessity — it is a strategic move that will define Oman’s role in the global energy and agricultural economy for decades to come. If the right policies and investments are made today, Oman can emerge as a global hub for sustainable ammonia, securing both its economic future and its contribution to global food security.
The writer is the head of Oman Observer Business Section
Oman plays a crucial role in the global fertiliser supply chain, particularly in the Middle East, which is categorised as a net exporter of ammonia-based fertilisers. The Sultanate of Oman’s ammonia exports are particularly significant for India, one of the world’s largest consumers of nitrogen fertilisers, reinforcing strong trade ties that ensure food security for millions.
The country benefits from its strategic location and well-established port infrastructure, which facilitates efficient transportation of fertilisers to key markets. However, as the ammonia industry faces increasing regulatory and environmental pressures, Oman must consider the future of its production methods to maintain competitiveness.
The sustainability challenge
Ammonia production is energy-intensive, with the global industry contributing approximately 1.3% of total greenhouse gas emissions due to its reliance on natural gas. While natural gas has long been the dominant feedstock, reliance on fossil fuels exposes Oman to price fluctuations, supply chain disruptions and international climate policies that may impose stricter carbon reduction targets.
With global commitments to achieving net-zero emissions by mid-century, the ammonia industry is at a pivotal moment. Major importers, including the European Union, are increasingly prioritising low-carbon ammonia sources, and future trade agreements may require cleaner production processes. This presents a critical question for Oman: How can the country continue to lead in ammonia exports while reducing its environmental impact?
Opportunities in low-carbon ammonia
A new Low Carbon Ammonia for Sustainable Agriculture report outlines three primary alternatives to traditional ammonia production:
1. Carbon Capture and Storage (CCS): CCS can reduce ammonia-related emissions by up to 70% while maintaining reliance on natural gas. Oman’s existing oil and gas infrastructure makes it well-suited for integrating CCS into its industrial sector. By leveraging its expertise in enhanced oil recovery and underground carbon storage, the country could significantly cut emissions while continuing production.
2. Green Hydrogen and Electrolysis-Based Ammonia: Electrolysis-based ammonia production, powered by renewable energy, eliminates carbon emissions from the process. Oman’s substantial investments in green hydrogen, including large-scale projects backed by international investors, indicate a readiness to transition towards clean ammonia production. Although electrolytic ammonia remains costlier than traditional methods, declining renewable energy costs and potential subsidies could make it more viable in the near future.
3. Biochemical Ammonia Production Using Biomass: Biomass-derived ammonia could further reduce fossil fuel dependency, but it requires significant land and water resources, making it less feasible for Oman given its arid climate.
Policy and Strategic Recommendations
To solidify its role in the future of ammonia production, Oman should adopt a phased approach towards decarbonisation.
• Strengthening Green Hydrogen Initiatives: Oman’s existing hydrogen projects should integrate ammonia production to supply low-carbon fertilisers to global markets.
• Developing Carbon Capture and Storage (CCS) Capabilities: By investing in CCS, Oman can continue leveraging its natural gas reserves while complying with global decarbonisation standards.
• Expanding Renewable Energy Capacity: Solar and wind energy can power ammonia plants, reducing reliance on fossil fuels. With abundant solar resources, Oman has a strategic advantage in this transition.
• Aligning with Global Regulations: Oman must anticipate future carbon regulations and secure agreements with key trading partners to ensure continued market access for its ammonia exports.
Conclusion
Oman’s ammonia sector is at a turning point. As the global fertiliser industry moves towards sustainability, the Sultanate of Oman has a golden opportunity to lead rather than follow. By integrating carbon capture, green hydrogen and renewable energy into its ammonia production framework, Oman can maintain its position as a leading exporter while ensuring long-term environmental and economic resilience.
The transition to low-carbon ammonia is not just a necessity — it is a strategic move that will define Oman’s role in the global energy and agricultural economy for decades to come. If the right policies and investments are made today, Oman can emerge as a global hub for sustainable ammonia, securing both its economic future and its contribution to global food security.
The writer is the head of Oman Observer Business Section