There is an increased consensus around the world that focused steps need to be taken to reduce global warming to levels less than 2° C and, if possible, to cap it at 1.5° C higher than pre-industrial levels. Various countries have pledged their nationally determined contributions to ensure energy transition and reduce emissions.
In addition, most large economies have committed to net zero targets. Transitioning to Green Hydrogen and Green Ammonia is one of the practical solutions, both of which have been gaining a lot of momentum lately, driven by the need to meet sustainable development goals (SDGs), reduce carbon emissions, and address the climate challenge overall.
The main advantage of green hydrogen is that it can generate massive energy with zero emissions of harmful gases. Green hydrogen is also an explosive chemical, meaning it is a source of energy, which qualifies it to achieve the goal of replacing more than 10 billion barrels of oil from global energy consumption within the year 2050. Oman aims to become one of the world's leading green hydrogen hubs. Several fundamental components, such as the abundance of land, high sun radiation and good winds, large coastal areas and proximity to energy markets, support the focus on green hydrogen in Oman. Equally, Oman's vision 2040 sets a clear road map and focuses on diversification and renewable energy. In fact, Oman is taking a progressive role and has recently signed several green hydrogen projects; in Duqm, Salalah and Sohar. The investment ticket for each hydrogen project is enormous, and when these projects materialize, they will indeed have a significant impact on the economy and investment landscape. To unlock the green hydrogen potential Oman is seeking to attract sizable foreign direct investments to the sector.
The Ministry of Energy and Minerals is carefully working to unify efforts with other parties concerned with investment and developing appropriate policies, legal and regulatory frameworks as well as basic studies for this sector. There are preconditions for the green hydrogen agenda and projects to move forward and become successful such as access to finance, infrastructure, technology, enabling legislative framework and aggregating industry demand locally and internationally through export.
Finally, Green hydrogen provides ample opportunities for local companies who would like to diversify and adventure to this new sphere in downstream, midstream and upstream for instance, by manufacturing solar panels, winds plates as well as providing services to companies in production and those in different phases of the green hydrogen project. In essence, in Oman our ambition is high, our commitment is deep, and we have all that it takes to become one of the world's leading green hydrogen hubs.
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