Oman is rapidly positioning itself as a key player in the global green energy landscape. With several large-scale projects in green hydrogen, onshore wind, and solar energy, the country is laying the foundation for a clean energy revolution that will help reduce carbon emissions, diversify its economy, and create numerous job opportunities.
Clean Hydrogen Projects: A Bold Vision for the Future
Oman’s ambitious green energy plans include a significant investment in clean hydrogen production. By 2030, the country aims to become a global hub for hydrogen production, targeting 1 to 1.5 million tons annually, with hopes to increase to 3.75 million tons by 2040. These efforts are supported by a favorable regulatory environment and Oman’s expansive, low-cost land, ideal for renewable energy projects.
In 2024 alone, Oman signed agreements worth over $20 billion for green hydrogen projects. A standout initiative includes a consortium led by EDF Group and J-POWER, which aims to produce 178,000 tons of green hydrogen per year using 4.5 GW of solar and wind energy. Such projects could significantly contribute to the global transition toward green hydrogen, with Oman playing a leading role.
The Dhofar project, which features a 2.5 GW state-of-the-art electrolyser, is also in the works, with plans to supply hydrogen to a new ammonia plant in the Salalah Free Zone. Furthermore, BP has acquired a 49% stake in the Hyport Duqm green hydrogen project, expected to produce 57,000 tonnes of green hydrogen and 650,000 tonnes of green ammonia annually by its second phase.
Onshore Wind: Powering Domestic Needs
Oman’s green energy transition extends to onshore wind projects, with a plan to generate roughly 1 GW through five Independent Power Projects (IPPs) by 2027. This renewable electricity will supply the national grid to meet rising domestic demand, driven by population growth and energy-intensive needs such as air conditioning.
The Mahoot I project, the largest of the five, will have a capacity of up to 400 MW and requires an investment of $1.18 billion. These projects underscore Oman’s commitment to balancing its domestic energy needs with its green energy ambitions.
Solar Energy: Large-Scale Initiatives for a Sustainable Future
Oman’s solar energy plans are equally impressive. The 500 MW Manah 1 project, led by a consortium of EDF Renewables and Korea Western Power Corporation, will supply clean energy to 50,000 households while offsetting 700,000 tons of CO2 annually. Commercial operations are expected to begin by the first quarter of 2025.
In addition, the $400 million Ibri III project will cover 10 million square meters and is expected to come online by the end of 2026. With a focus on using local goods and services, these projects aim to maximize in-country value (ICV), ensuring that Omanis benefit from the renewable energy transition through job creation and local engagement.
Oman’s Role in the Global Green Energy Transition
Oman’s green energy projects align with the country’s long-term goals of increasing its renewable energy capacity and reducing its carbon footprint. By 2040, Oman aims for 35-40% of its electricity to come from renewable sources. The country’s strategic location between Europe and Asia, combined with its commitment to green hydrogen and other renewables, positions it as a major player in the global decarbonization efforts.
With its ambitious plans and significant investments, Oman is well on its way to becoming a leader in the green energy transition. This shift not only promises environmental benefits but also economic growth and new job opportunities for Oman’s population. As the country continues to attract international investments, it is clear that Oman will play a central role in the future of global renewable energy.
If you are looking to explore opportunities in Oman’s renewable energy sector, now is the time to get involved. The demand for skilled professionals in hydrogen production, solar and wind energy, and project development is growing rapidly, and Oman is set to become a focal point for green energy innovation in the coming decades.
