Oman Accelerates Green Hydrogen Technology Localisation: Key Implications for Business Investment and Innovation
MUSCAT, JULY 18 — Hydrom, a key player in Oman’s green hydrogen sector, has announced noteworthy advancements in the localization of technology and manufacturing capabilities essential for achieving the nation’s ambitious green hydrogen goals. This includes the deployment of extensive solar panels, wind turbines, electrolysers, and other critical equipment.
Several green hydrogen initiatives are currently in the early stages of development across the Al Wusta and Dhofar governorates, with operations expected to begin around 2030. These projects will contribute to Oman’s objective of producing 1 million tonnes of low-carbon molecules annually by that date. Achieving this target will necessitate the installation of approximately 40 million solar panels and up to 3,000 wind turbines, nearly tripling the country’s current grid capacity, as noted by Eng. Abdulaziz Al Shidhani, Managing Director of Hydrom.
In an interview with The Energy Year, a UK-based energy news platform, Al Shidhani stated, “To reach our 2030 targets, we’re proactively enabling this expansion by laying the necessary groundwork now. With project contracts signed for up to 47 years, the momentum is clear and investors are taking note.”
He highlighted the importance of technology localization within Hydrom’s strategy, mentioning partnerships through Memoranda of Understanding (MoUs) with electrolyser manufacturers such as Siemens Energy and ThyssenKrupp Nucera. These collaborations will facilitate domestic production of polysilicon, solar panels, and wind turbines, with Suhar designated for solar panel manufacturing and Al Duqm for wind turbine assembly.
Over the past year, Suhar has attracted more than a billion dollars in new investments from Chinese firms focused on large-scale solar panel and module production, aimed at domestic and regional markets. Additionally, United Solar Polysilicon (FZC) SPC, an international green energy company, is making swift progress on a $1.6 billion polysilicon plant in Suhar Industrial City, which will have a capacity of 100,000 tonnes per year.
In parallel with its efforts to establish a robust green hydrogen production sector, Hydrom is dedicated to developing supply chains and a comprehensive ecosystem around green hydrogen. Last September, the company organized a Green Hydrogen Ecosystem Readiness Lab, collaborating with 58 government entities. Al Shidhani elaborated, “We identified 26 strategic initiatives categorized into five core areas: logistics and infrastructure readiness, regulatory streamlining, technology localization, workforce capacity building, and domestic market development. These initiatives are actively monitored through our green hydrogen acceleration dashboard, gH2ad, which promotes transparency and aligns stakeholders with shared objectives.”
Hydrom is also partnering with free zone authorities to identify suitable land for investments in downstream green hydrogen conversion and other value-added industries. “We closely coordinate with free zone authorities to align policies and infrastructure. For instance, Vulcan Green Steel and others are planning green steel projects that will depend on hydrogen supply chains from outside the free zones,” he added.
Preparations are being made to manage the substantial quantities of hardware required by the green hydrogen sector, much of which will be imported in the early years. The Port of Duqm, which previously handled wind turbine arrivals for Dhofar’s first wind farm in 2019, will continue to serve as a key entry point for this equipment.
Al Shidhani stated, “We’ve assigned ASYAD to lead logistics, focusing on three key initiatives: conducting a readiness assessment, implementing a control-tower approach for scheduling from port to site, and coordinating with ongoing oil and gas activities. We are piloting our plan with the recently signed 100-MW PDO Riyah-1 and Riyah-2 wind farm projects in Al Duqm, allowing us to learn and adapt as necessary.”
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s commitment to establishing a robust green hydrogen sector presents both opportunities and challenges for businesses. Companies involved in technology localization and the manufacturing of essential hardware can benefit from substantial investments, while potential risks include navigating the complexities of a rapidly evolving regulatory landscape. Smart investors and entrepreneurs should focus on aligning with localized production initiatives and positioning themselves within the emerging supply chain to capitalize on the anticipated growth before 2030.
