Maximizing Value Creation from Green Hydrogen: Key Insights for Investors and Entrepreneurs in Oman
MUSCAT, AUGUST 27 — The drive for localisation, which includes In-Country Value (ICV) development, local supply chain enhancement, small and medium-sized enterprise (SME) participation, skills development, and community engagement, is central to Oman’s vision for maximising value from its green hydrogen sector. This emerging industry is poised to attract investments in the tens of billions of dollars.
A senior official at Hydrom, the government-backed entity overseeing Oman’s green hydrogen initiatives, emphasized that success should not solely be gauged by the volume of exported green hydrogen but also by the broader socioeconomic benefits it brings to the Sultanate.
“True success extends beyond exports; it encompasses the positive ripple effects such as increased private sector involvement, workforce development, and enhanced local content,” stated Rumaitha al Busaidy, Business and ICV Development Manager at Hydrom. “Our primary goal is to maximise value creation for Oman, guiding every effort we make leading to 2030.” Al Busaidy shared these insights during an interview with The Energy Talks, a platform aimed at promoting the Green Hydrogen Summit Oman 2025.
Currently, nine large-scale green hydrogen and ammonia projects are in the early stages of development in Oman’s Al Wusta and Dhofar governorates. Together, these projects are slated to produce approximately 1.5 million tonnes of green hydrogen annually starting in 2030, with an estimated investment of $50 billion.
Al Busaidy underscored Hydrom’s unwavering commitment to ICV development. “For every project in progress, including those in our current auction round, developers must present robust ICV and community engagement strategies, clearly demonstrating how their supply chains will benefit Omani nationals,” she affirmed.
To assist SMEs in establishing a presence in this burgeoning sector, several initiatives have been introduced. The SME Development Authority (Riyada) has launched targeted programmes focusing on renewable energy and hydrogen. Additionally, Hydrom offers information packages detailing hydrogen basics, ongoing projects, and business opportunities, helping SMEs align their skills with industry requirements.
Given that hydrogen represents a novel industry, significant opportunities await SMEs throughout the entire value chain, Al Busaidy remarked. This encompasses various areas, including solar panels, wind turbines, electrolyser components, e-fuels, derivatives, and necessary infrastructure like pipelines. “There are countless avenues for Omani SMEs to participate,” she noted.
Riyada’s hydrogen-focused programme, initiated last year, aims to enhance SMEs’ capabilities through training and market insights, positioning them for growth in the sector. At a broader scale, Hydrom is actively identifying local content opportunities and preparing them for market entry, directing resources towards Omani businesses and potential investors.
“For instance, Oman will require approximately 5,200 electrolysers by 2050, generating substantial demand for raw materials such as aluminium, silica, and cement. These supply chain requirements present tangible opportunities for local industries,” Al Busaidy explained. Hydrom has already made available data packs on its website that highlight such prospects, including raw material needs through 2030 and 2050, thus providing entrepreneurs with a clear guide for significant engagement.
Community engagement also forms an essential part of Hydrom’s strategy. The organization is collaborating closely with governors’ offices, community leaders, and local representatives to foster early buy-in. It participates in regional events and forums, particularly during the Khareef Dhofar Season, as opportunities to connect directly with local communities.
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Oman’s focused approach on localisation and In-Country Value (ICV) in the green hydrogen sector presents significant opportunities for SMEs to participate in a fast-evolving industry, potentially leading to job creation and technology transfer. However, businesses must navigate the increased requirements for community engagement and local content to successfully secure contracts. Investors should consider the essential role of aligning with local stakeholders and the evolving demands for resources, as these factors will shape the competitive landscape leading up to 2030.
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