Oman’s OQAE Aims for 10 GW in Renewables by 2035: Implications for Investors and Sustainable Business Opportunities
MUSCAT: OQ Alternative Energy (OQAE), the clean energy division of the integrated Omani energy group OQ, has revealed its ambitious plans to establish over 10 gigawatts (GW) of renewable energy capacity within the next decade. The company also aims to activate a portion of its green hydrogen production capabilities during this period.
Najla al Jamali, CEO of OQ Alternative Energy, stated that these initiatives align with the company’s decarbonization and energy transition strategies, affirming its role as Oman’s national champion in clean-energy development.
“In our vision for 2035, I foresee OQAE not only exceeding 10 GW in renewable energy production but also becoming a regional leader, with potential expansions beyond Oman. I hope to see our hydrogen projects catering to both domestic and international markets while minimizing export dependencies through local partnerships,” Al Jamali shared in an interview with The Energy Year, a London-based news platform.
The implementation of this strategy has already commenced with the construction of three renewable energy projects—Riyah 1 and Riyah 2 wind farms, and the North Oman Solar project—collectively generating around 300 MW. The energy produced will be contracted to Petroleum Development Oman (PDO), the country’s leading oil and gas producer. Additionally, OQAE is backing another 300 MW solar farm to supply clean energy for the Marsa LNG bunkering project, which is currently being developed at Sohar Port.
During the interview, Al Jamali emphasized the essential role of international partnerships in achieving OQAE’s ambitious clean energy targets. These collaborations not only provide capital but also bring advanced technology and operational expertise. Many partners, including oil and gas producers and industries with high carbon emissions, are also potential customers for OQAE’s clean energy as they pursue their own decarbonization goals.
“Our customer base in the clean energy sector includes PDO, Marsa LNG, Oxy, and OQ Exploration & Production (OQEP),” she noted. “Potential customers also include oil and gas companies such as PDO, BP, Shell, and Oxy, as well as industrial entities like Vale, Jindal, and Sohar Aluminium. Additionally, we aim to serve refineries and plants within the OQ Group, particularly in Salalah.”
Notably, OQAE is enhancing its role in solar and wind energy development to support Oman’s national renewable energy objectives. Earlier this year, OQAE secured a commitment for a stake of up to 25 percent in all future renewable energy projects procured by Nama Power and Water Procurement Company (PWP), the entity responsible for new power and water capacity in Oman. This agreement covers upcoming solar and wind projects, beginning with the Ibri III Solar PV project, a 500 MW initiative planned for Al Dhahirah Governorate.
“As the national champion, we have rights to tenders through Nama Power and Water Procurement. We have already seen three projects proposed. Ibri III has been awarded, while the Jaalan Bani Bu Ali and Dhofar Wind 2 projects are advancing. Nama Power and Water Procurement has allocated about 1 GW of wind capacity to us, with some sites already identified and others awaiting selection,” Al Jamali explained.
Regarding OQAE’s green hydrogen initiatives, the CEO noted, “We anticipate our hydrogen projects to progress from around 2030 onward, with some developments continuing into the following decade.”
She added, “Our Hyport project features a 500 MW electrolyzer. Green Energy Oman and Salalah H2 each represent around 2 GW. Collectively, these three projects are expected to produce approximately 400 kilotonnes annually. We believe they are among the most advanced in the region, having gathered critical wind data and progressed to the pre-FEED stage.”
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Oman’s push for over 10 GW in renewable energy offers substantial opportunities for businesses, especially in clean technology and sustainable practices. However, this ambitious agenda also poses risks related to the integration of international partnerships and fluctuating market demands for green technologies. Smart investors and entrepreneurs should consider aligning with OQAE’s initiatives, as early involvement in renewable projects could yield significant advantages in an evolving energy landscape.
