MUSCAT: Oman is setting its sights on becoming a major player in the global hydrogen economy, with plans to develop 30 gigawatts (GW) of hydrogen production capacity by 2040 and attract $34 billion in renewable hydrogen investments, according to a report by DNV, a leading independent risk management and energy consultancy services provider.
The Hydrogen Forecast to 2050 report by the Norwegian firm highlights Oman’s strategic push to harness its abundant renewable energy resources, including solar and wind, to produce green hydrogen. The report also outlines the country’s plans to leverage its existing natural gas infrastructure for blue hydrogen production.
“Oman has set ambitious targets for hydrogen, with 10 GW of capacity planned by 2030 and a tripling to 30 GW by 2040,” the report states. “These developments position Oman as a key contender in the Middle East’s emerging hydrogen economy, alongside the UAE and Saudi Arabia.”
Hydrogen is expected to play a pivotal role in Oman’s industrial sector, particularly in hard-to-abate industries such as steel, aluminum, and chemical production. The report notes that hydrogen will also be integrated into the country’s transportation sector, including road transport applications.
Beyond domestic use, Oman is eyeing hydrogen exports to Europe and Asia, where demand for clean energy solutions is rising. The report indicates that Oman’s strategic location along global shipping routes gives it a competitive edge in the international hydrogen trade.
“Hydrogen derivatives like ammonia will be key for exports, with 59 per cent of globally traded energy-related ammonia expected to be transported between regions by 2050,” the DNV report states. “Oman’s strong ammonia production capabilities will help establish it as a leading hydrogen exporter.”
Despite its potential, Oman faces competition from other regional players, including the UAE, Saudi Arabia, and Morocco, all of which are investing heavily in hydrogen production. The report warns that Oman will need to accelerate infrastructure development and regulatory frameworks to stay ahead.
“Key challenges include high initial investment costs, the need for clear policy frameworks, and global competition in hydrogen production,” DNV notes. “However, Oman’s access to low-cost solar and wind energy, coupled with its existing gas infrastructure, positions it favorably for scaling up hydrogen production.”
The Omani government has been actively working to attract foreign investment in its hydrogen sector. The country recently signed agreements with international energy firms to develop large-scale hydrogen projects, with the goal of establishing Oman as a global hydrogen hub.
Industry analysts believe that with the right policies and infrastructure in place, Oman could emerge as a major supplier of clean hydrogen to international markets.
“Oman has all the right ingredients to become a leader in hydrogen,” the report concludes. “By leveraging its renewable resources, existing gas infrastructure, and strategic location, it can play a crucial role in the global energy transition.”
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