Oman’s ambitious Green Hydrogen Plan receives Fitch Ratings’ optimistic nod

Oman’s ambitious Green Hydrogen Plan receives Fitch Ratings’ optimistic nod

Fitch Ratings' recent confirmation underscores the significant credit potential in Oman's pioneering strides towards augmenting domestic green hydrogen production.

The post Oman’s ambitious Green Hydrogen Plan receives Fitch Ratings’ optimistic nod appeared first on The Arabian Stories News.MUSCAT : The government’s robust vision to expand renewable energy-based hydrogen production could herald transformative impacts on key credit metrics, including GDP, fiscal revenues, and balance of payments, aligning with the global energy transition. However, amidst the promising trajectory, uncertainties loom over the sector’s nascent stage of development.

Oman sets ambitious benchmarks to elevate renewable energy-based hydrogen production, targeting one million metric tons by 2030, escalating to 3.25 million metric tons by 2040 and an impressive 7.5 million metric tons by 2050. In a significant move forward, state-owned Hydrogen Oman (Hydrom) inked six investment agreements, valued at over US$38 billion, with strategic partners in 2023.

Fitch Ratings anticipates that Oman’s hydrogen strategy would largely sidestep substantial investments from state-owned enterprises or associated contingent sovereign obligations, considering Hydrom’s provision of prefabricated plots. Most projects in the Sultanate within this domain focus on hydrogen production and export, primarily from ammonia or steel.

The near-term impact of this ambitious green hydrogen initiative is poised to stimulate investment, external indices,