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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Decree paves way for speedy realization of Oman’s green hydrogen vision

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Thursday’s Royal Decree 10/2023, centring on the allocation of land plots for renewable and green hydrogen projects, has been hailed as a critical piece of legislation that will underpin the accelerated implementation of mega-scale green energy projects.


According to industry experts, Royal Decree 10/2023 forms the lynchpin of Oman’s regulatory framework governing the country’s nascent green hydrogen industry. Supporting guidelines in the form of Executive Regulations from the Ministry of Energy and Minerals are expected to follow.


Welcoming the keenly-awaited Royal Decree, the Ministry noted in a post: “Royal Decree 10/2023 specifies the range of land areas suitable for the purposes of renewable energy and clean hydrogen projects, which will enhance the development of this promising sector, attract investments to it, plan and develop the necessary infrastructure for it, and maintain the competitiveness of green hydrogen production in the Sultanate of Oman.”


Eng Abdulaziz al Shidhani, Director General of Renewable Energy and Hydrogen at the Ministry, commented: “Royal Decree No 10/2023 with its eight articles comes as a continuation of concerted efforts to regulate and develop the renewable energy and clean hydrogen sector and to enhance the investment environment in it, and as a culmination of joint action that resulted in this effort. May the Almighty crown these sincere endeavours with success for the good and advancement of the country.”


The Decree comes less than two months before Hydrogen Oman (Hydrom), the central and independent entity orchestrating the delivery of the nation’s green hydrogen strategy, is set to award the first two land blocks at the end of the maiden round of a competitive process over land allocations for mega green energy projects. Final offers for a pair of land blocks currently being auctioned by Hydrom are due by March 15, 2023. An award is likely by April-end 2023, with the successful winners securing a block each of 320 sq km in Duqm to develop all phases of their projects – upstream, midstream and downstream (and future expansion as well) - against 49-year usufruct agreements.


Importantly, the Decree also authorizes Oman’s Minister of Energy and Minerals to “approve some projects allocated for renewable energy and clean hydrogen which have been signed” prior to the launch of the auction process. Experts interpret this provision as a reference to the ‘Legacy Initiatives’ – large-scale green hydrogen ventures that were unveiled over the past 2 – 3 years before the unveiling of Oman’s Green Hydrogen Strategy last October.


At least five such ‘Legacy Initiatives’, potentially involving tens of billions of dollars in foreign investment, are being reviewed by Hydrom so they can be brought into alignment with the national green hydrogen strategy. The majority are backed by OQ Alternative Energy – part of state-owned energy group OQ.


Oman is targeting the production of around 1 million tonnes per annum of green hydrogen by 2030 – a goal that will require a sizable portfolio of projects (either emerging via the auction route or legacy initiatives) to get started with the construction of their schemes in the next couple of years.


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