Progress in Green Tech Adoption in Transport: What It Means for Business Opportunities in Oman
MUSCAT, DECEMBER 1 — Oman is making steady and strategic advancements in decarbonising its transportation sector, aligning with the nation’s broader commitment to a low-carbon future. Covering light vehicles, heavy trucking, shipping, port operations, and aviation, the Sultanate is deploying a range of green technologies and policy frameworks aimed at reducing emissions while positioning itself as a regional leader in clean mobility and sustainable fuels.
In a recent panel discussion on Hydrogen Ecosystems at the Energy Executive Circle, Abdullah al Busaidy, Director General of the Oman Logistics Centre at the Ministry of Transport, Communications and Information Technology (MoTCIT), detailed Oman’s multi-modal transport decarbonisation strategy. The Ministry is spearheading the development of a national green transportation framework, incorporating policy formulation, investment incentives, and collaboration with both public and private sector stakeholders.
Al Busaidy explained, “When we started crafting the road map two years ago, the trajectory for light vehicles was clear — we have decisively moved towards electric vehicles.” He noted that for heavy transport, the strategy is still evolving, emphasizing the importance of private sector engagement to ensure that sustainable solutions are both commercially viable and practical for operators.
A key achievement of the Ministry is the creation and local production of co-combustion truck technology, enabling the retrofit of existing diesel fleets to operate on hydrogen as well. Trials conducted in Oman have demonstrated a 53% reduction in CO₂ emissions, marking a significant milestone that meets transition goals without increasing operating costs for logistics companies.
To further support heavy transport, the Ministry plans to establish green transport corridors, notably linking the ports of Suhar and Al Duqm with concession zones, facilitating hydrogen-ready logistics routes.
In maritime transport, Oman is exploring green bunkering options through the use of green methanol. This effort is underpinned by a collaboration between the Ministry and an international consortium comprising HIF EMEA, ACCIONA & Nordex Green Hydrogen, and Al Meera Investment. Their joint project aims to produce and supply green methanol for ships in Dhofar Governorate, strategically advancing Oman’s vision to develop the region as a major hub for green fuels and low-carbon bunkering in the Middle East.
The aviation sector is also undergoing transformation with the launch of Oman’s first sustainable aviation fuel (SAF) initiative, developed in partnership with private sector firm Bauer Nimr.
Oman is nearing formal membership in the Heavy Transport Decarbonisation Alliance, reinforcing its commitment to international cooperation and exchange of best practices.
“Our targets are clear, our commitment firm, and challenges drive us to innovate,” Al Busaidy stated, highlighting localisation, collaboration, and innovation as the central pillars of the Ministry’s decarbonisation efforts.
The panel included prominent industry figures such as Jürgen Rechberger from AVL List GmbH, Raul Ochagavia of ACCIONA Nordex Green Hydrogen, Ahmed al Abri of Hydrom, Anton Geers from the Port of Antwerp-Bruges, and Mohsin al Jabri from the Oman Net Zero Centre. The discussion was moderated by Siddiqa al Lawati, Advisor — Low Carbon Molecules at OQ.
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Oman’s strategic push towards decarbonising its transportation sector presents significant opportunities for businesses to invest in green technologies such as hydrogen retrofitting and sustainable fuels. For entrepreneurs and investors, the emphasis on collaboration between public and private sectors and the development of green transport corridors and hubs like Dhofar Governorate highlight promising avenues for growth in clean mobility and low-carbon logistics. Smart investors should now consider leveraging emerging green fuel markets and sustainable aviation initiatives to align with Oman’s long-term low-carbon goals and policy incentives.
