Oman signs $20 billion green hydrogen agreements

Oman’s Hydrom, government-owned company, signed agreements on Tuesday to develop six green hydrogen projects, to see installation of 15GW renewable energy capacity and more than $20 billion worth of investments over the next seven years.

These projects are expected to provide over 700,000 tons of green hydrogen which would be further processed in local industries and into energy carriers for export, according to the report.

The agreements were signed with BP Alternative Energy Investments Limited (for one project in Duqm and another in Dhofar), Green Energy Oman, Green Hydrogen and Chemicals SPC (owned by ACME), Hyport Duqm consortium, and SalalaH2 consortium.

“These agreements form the first testimony of our success towards decarbonisation, we look forward to signing more agreements,” Oman’s Minister of Energy and Minerals, Salim Al Aufi, said.

The Sultanate of Oman has set a clear roadmap towards decarbonisation and achieving Net Zero by 2050, and Hydrom has been established as an orchestrator of green hydrogen industry in Oman, regulated by the Ministry of Energy and Minerals.

Oman aims to increase green hydrogen production from 32,500 to 3.75 million tons per year by 2040 and from 3.5 to 8.5 million tons per year by 2050.

The country estimates that it will need a cumulative investment of $140 billion over this period to reach its production target by 2050.