Oman’s green hydrogen sector is the most developed in GCC: Report

Oman’s green hydrogen sector is the most developed in GCC: Report

The Sultanate of Oman has a long pipeline of green hydrogen projects and the clearest strategy in the GCC for the industry’s development, according to a report of Oxford Analytica, an independent geopolitical analysis and advisory firm drawing on a worldwide network of experts.

The Sultanate of Oman aims to achieve 30 gigawatts of electrolyser capacity by 2040, the report said, noting that investors are attracted by the country’s sun, wind and land resources, access to potential markets and supportive government policy.

“The hydrogen sector will become a major contributor to Oman’s GDP and external balances by 2030, which will offset the decline in oil revenues. The Sultanate of Oman will increasingly shift its marketing focus from Asia to Europe, as the latter attempts to reduce its energy dependence on Russia, and regional sovereign wealth funds are likely to be major investors in Oman’s green hydrogen revolution,” Oxford Analytica said.

The Omani government’s decision to embark on the green hydrogen journey is driven by four interrelated factors: (1) The domestic and external financial crises caused by the decline in oil prices in 2020; (2) The high cost of oil production in the Sultanate of Oman and the low levels of reserves. (3) Gas