OETC Appointed to Lead FEED for Green Hydrogen Transmission: Implications for Investement Opportunities in Oman
MUSCAT: Oman Electricity Transmission Company (OETC), the operator of the Sultanate of Oman’s power transmission system, has been tasked by authorities to conduct the Front-End Engineering Design (FEED) for shared transmission assets as part of the Common User Infrastructure (CUI) supporting Oman’s burgeoning green hydrogen industry.
In its latest Omangrid bulletin, the majority state-owned utility revealed that the Green Hydrogen Infrastructure Steering Committee assigned this critical responsibility. This committee oversees the implementation of the CUI, which supports a robust portfolio of green hydrogen projects spread across the Al Wusta and Dhofar Governorates.
Currently, nine major projects have been awarded through Hydrom, the visionary behind Oman’s green hydrogen sector. These initiatives aim to achieve an annual production of approximately 1.4 million tonnes of green molecules by 2030, backed by up to 35 gigawatts of renewable generation capacity. OETC emphasized that integrating these large-scale projects into the existing transmission network presents significant challenges.
“Estimates suggest that 95% of the energy generated will be utilized directly at the production sites, leaving only 5% to be fed into the grid. This unconventional distribution requires OETC to reconsider its planning strategies, infrastructure, and technical support,” the utility — part of the Nama Group — stated.
Dr. Rashid al Badwawi, General Manager of Green Hydrogen Projects Support, highlighted OETC’s critical role as the national entity responsible for electricity transmission within the government’s common infrastructure program for hydrogen.
“Green hydrogen is not merely an alternative fuel; it is a catalyst for comprehensive transformation in the energy sector. We are dedicated to developing the necessary infrastructure and operational capabilities to facilitate this transition, despite the challenges, because we believe in the immense opportunities the future presents,” he remarked.
To support its objectives, OETC is leveraging advanced technological solutions, including automation systems, digital asset management, and storage technologies, to ensure grid stability given the intermittent nature of renewable energy sources.
“These initiatives align with the Ministry of Energy and Minerals’ policies aimed at strengthening the hydrogen economy and achieving sustainability goals. OETC’s role is vital not just in constructing a flexible transmission network but also in shaping future energy distribution frameworks in Oman and the broader region,” Dr. al Badwawi noted.
In addition to OETC, other Omani utilities will play essential roles in developing the Common User Infrastructure for the hydrogen sector. OQ Gas Networks (OQGN), which operates the national gas transmission system, has been entrusted with the development of the hydrogen pipeline network that will transport hydrogen from production sites to ports or export hubs.
Nama Water Services, the national water utility, will oversee the supply infrastructure for desalinated and ultrapure water necessary at hydrogen production zones — a vital component for electrolysis-based green hydrogen production.
Hydrom is coordinating efforts among OETC, OQGN, Nama Water Services, and other stakeholders in establishing the CUI. The organization is responsible for land allocation, leading the establishment of the infrastructure company (provisionally named “InfraCo”), and engaging with hydrogen project developers.
This shared, state-supported infrastructure, managed by national utilities, will significantly lower entry barriers for developers and expedite the growth of Oman’s hydrogen industry.
Special Analysis by Omanet | Navigate Oman’s Market
The recent developments in Oman’s green hydrogen sector present significant opportunities for businesses looking to invest in sustainable energy. As OETC reimagines its infrastructure to accommodate new energy dynamics, strategic investors should focus on collaborative innovations in technology and partnerships that enhance grid stability and efficiency. However, the unconventional distribution model introduces risks related to integration and operational scalability that require careful consideration.
