Oman’s Exploration of Sand-Based Thermal Energy Storage: What It Means for Future Energy Investments and Businesses
MUSCAT, MAY 23 — OQ Gas Networks (OQGN), the Sultanate of Oman’s exclusive gas transmission operator, has partnered with Omani renewable energy startup AB Energy to advance a pioneering thermal sand energy storage project, one of the first of its kind in the country.
The majority state-owned OQGN, a subsidiary of the OQ Group, announced the signing of an engineering design contract with AB Energy for the development of this sand-based thermal storage system. The company described the initiative as a “significant step towards advancing innovative and sustainable energy storage solutions.”
This agreement, finalized during Oman Sustainability Week 2026, follows an earlier memorandum of understanding between the two entities to explore zero-emission thermal heating systems utilizing sand-based thermal energy storage technology. OQGN emphasized in its 2025 Annual Report that the project supports its dedication to fostering innovation and adopting low-carbon solutions within its operations.
Energy experts explain that sand-based thermal storage, often known globally as a “sand battery,” stores energy by heating sand or silica materials with renewable electricity. Unlike lithium-ion batteries that store electricity directly, this method retains energy as high-temperature heat, which can later be used for industrial heating, steam generation, or various process applications.
Sand is favored as a storage medium due to its affordability, abundance, non-toxic nature, and excellent heat retention with minimal thermal losses over time. Thermal sand systems are particularly suited for industrial sectors requiring continuous high-temperature heat, making them an efficient alternative to electrochemical batteries.
Abdullah al Saidi, Founder and CEO of AB Energy, remarked that the contract represents “the transition from the proof-of-concept and basic design phase into detailed engineering for one of the region’s innovative thermal energy storage solutions.”
Established in 2024 and based in Muscat, AB Energy focuses on mobile solar solutions, integrated microgrids, and advanced thermal energy storage technologies.
During Oman Sustainability Week 2026, AB Energy also signed an agreement with Al Ghalbi Group to develop a 4-MWh solar power project in Mukhaizna. This project aims to supply clean energy, supported by battery storage, to a residential camp housing over 250 people.
Moreover, AB Energy entered into an agreement with National Finance to secure funding for the development and deployment of solar power projects, further accelerating the adoption of renewable energy across Oman.
Special Analysis by Omanet | Navigate Oman’s Market
The collaboration between OQ Gas Networks and AB Energy on thermal sand energy storage represents a strategic leap towards sustainable industrial energy solutions in Oman, highlighting a shift from traditional fossil fuels to innovative, low-carbon technologies. This creates significant opportunities for investors and entrepreneurs to engage in emerging renewable energy infrastructure and storage technologies, positioning Oman as a regional pioneer in clean energy storage. Smart investors should consider the potential of thermal storage systems in industrial applications, as well as the growing ecosystem around solar power projects supported by innovative financing models, signaling diversified growth prospects within Oman’s energy transition.
