From the sun-drenched deserts of Ibri to the coastal winds of Dhofar, Oman’s energy landscape is undergoing a profound transformation. According to the Ministry of Energy and Minerals’ 2024 Annual Report, the country is advancing a bold clean energy agenda through the creation of seven Renewable Energy Zones across Dhofar, Duqm, Al-Ghazir, Manah, Ibri, Sur, and Musandam. Far from being just markers on a map, these zones reflect Oman’s national commitment to sustainability, energy security, and economic diversification.
With a target of generating 30% of electricity from renewable sources by 2030, Oman is investing heavily in large-scale solar and wind energy projects. Solar farms are already underway in Manah and Ibri, while wind projects in Dhofar and Duqm are expanding rapidly. These zones were strategically chosen for their optimal solar radiation, wind capacity, and access to infrastructure—making them ideal for clean energy deployment.
But Oman’s ambitions extend far beyond electricity. The report outlines Oman’s fast-emerging role as a regional leader in green hydrogen. With a goal of producing 1 million tonnes of renewable hydrogen annually by 2030, scaling up to 3.75 million tonnes by 2040 and 8.5 million tonnes by 2050, Oman is poised to become the largest hydrogen exporter in the Middle East and a global front-runner.
To make this vision a reality, the country has designated 50,000 square kilometers—an area comparable to Slovakia—for hydrogen development. Through Hydrom, a government-backed entity, Oman has already signed eight major project agreements, integrating solar, wind, desalination, and hydrogen production technologies with an eye on export readiness.
At the heart of the strategy lies green ammonia, selected as the key vector for hydrogen exports. With existing port infrastructure and upgrades planned in Salalah, Duqm, and Sur, Oman is well-positioned to deliver cost-competitive hydrogen to global markets. By 2030, the cost of hydrogen production is expected to drop to $1.60 per kilogram, supported by some of the lowest renewable electricity costs worldwide—just $25–$35 per MWh.
The economic impact is equally compelling. The clean hydrogen sector could attract $33 billion in investments by 2030 and generate around $2 billion annually in export revenues. Domestically, transitioning to renewable hydrogen in refineries and heavy industry could reduce CO₂ emissions by more than 7 million tonnes annually—approximately 7% of Oman’s 2021 levels—and conserve over 3 billion cubic meters of natural gas each year.
This transformation aligns with Oman Vision 2040, with regulatory reforms, land tenders, and global certification efforts underway to boost credibility and competitiveness in international green markets. Oman is also exploring the use of hydrogen in steel production and high-temperature industrial applications, laying the groundwork for low-carbon industrial clusters.
Although the global hydrogen market is still emerging, Oman’s early action, strategic location, and strong policy backing position it as a serious player in the race to net-zero. The 2024 Annual Report reflects not just ambition, but measurable progress, concrete investments, and structural reform.
Oman’s clean energy future is no longer aspirational—it is in motion. Powered by sunlight, wind, and vision, the Sultanate is steadily redefining its role in the global energy transition.
Source: Oman Observer
