logo
Oman's clean energy transformation is no longer a distant goal

Oman's clean energy transformation is no longer a distant goal

Zawya5 days ago
From the desert interiors of Ibri to the coastal winds of Dhofar, Oman's energy future is shifting dramatically. The Ministry of Energy and Minerals' Annual Report 2024 outlines a bold transition: the establishment of seven dedicated Renewable Energy Zones across Dhofar, Duqm, Al-Ghazir, Manah, Ibri, Sur, and Musandam. These zones are not just strategic points on a map—they represent a national commitment to sustainability, economic diversification, and energy security.
With long-term targets to generate 30% of electricity from renewable sources by 2030, Oman is investing heavily in solar and wind power. Utility-scale solar farms in Manah and Ibri are already under development, and the expansion of wind energy projects in Dhofar and Duqm is underway. These zones were selected for their geographic strengths—solar intensity, wind potential, and access to existing infrastructure—making them ideal for large-scale clean energy deployment.
Yet Oman's ambitions go further. The report highlights the country's emerging role as a green hydrogen leader. Backed by abundant land and renewables, Oman aims to produce one million tonnes of renewable hydrogen annually by 2030, ramping up to 3.75 million tonnes by 2040 and 8.5 million tonnes by 2050. These targets would position Oman as the largest hydrogen exporter in the Middle East and among the top globally.
To enable this, Oman has allocated approximately 50,000 square kilometers of land for hydrogen development—an area equivalent to the size of Slovakia. Through the government-backed entity Hydrom, a total of eight project agreements have been signed to date. These integrated projects combine solar, wind, desalinated water, and hydrogen production infrastructure, all focused on export readiness.
Oman's strategy centers around green ammonia as the primary carrier for hydrogen exports. With existing port infrastructure and planned upgrades in Salalah, Duqm, and Sur, the country is well-positioned to deliver competitively priced ammonia to global markets. By 2030, Oman's hydrogen production costs are projected to fall to around $1.60 per kilogram, supported by some of the world's lowest renewable energy prices—between $25 and $35 per megawatt-hour.
The economic outlook is equally compelling. The clean hydrogen economy could bring in $33 billion in investments by 2030, while generating an estimated $2 billion in annual revenues from exports. Domestically, switching from fossil-based hydrogen to renewable hydrogen in refineries and industry could cut CO₂ emissions by more than 7 million tonnes annually—roughly 7% of Oman's 2021 baseline—and save over 3 billion cubic meters of natural gas each year.
These developments are part of a broader vision aligned with Oman Vision 2040. The government is also advancing regulatory frameworks, land auctions, and international certification to ensure credibility and competitiveness in emerging green markets. In parallel, Oman is exploring domestic hydrogen use in steelmaking and high-temperature industrial processes, setting the stage for low-carbon manufacturing clusters in the future.
While the global hydrogen market remains in its infancy, Oman's proactive approach—coupled with its geographic, economic, and political advantages—makes it a serious contender in the race toward a net-zero future. The Annual Report 2024 paints a picture not just of aspirations, but of measurable progress, real partnerships, and structural reform.
Oman's clean energy transformation is no longer a distant goal. It is an evolving national strategy, already underway—anchored in data, powered by sunlight and wind, and steadily redefining the country's place in the global energy landscape.
2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (Syndigate.info).
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Oman: Duqm emerges as new tourism hub with $47.7mln investment
Oman: Duqm emerges as new tourism hub with $47.7mln investment

Zawya

time25 minutes ago

  • Zawya

Oman: Duqm emerges as new tourism hub with $47.7mln investment

Duqm – Tourism investment in Special Economic Zone at Duqm (SEZAD) exceeded RO853mn at the end of 2024, underscoring Duqm's growing appeal as a coastal destination and business hub. According to SEZAD figures, tourism development in the zone includes 21 hotels, ten hotel apartment buildings and a multi-facility complex comprising hotels, villas and serviced apartments. Sixteen tourism projects were completed by the end of 2024, 11 were under construction and five in pre-construction phase. Ahmed bin Ali Akaak, CEO of SEZAD, said Duqm's location on the Arabian Sea, with access to the Indian Ocean and moderate year-round temperatures, positions it as a strategic tourism destination. The area is also home to several natural and recreational sites including Duqm Beach Park, the Rock Garden, Saay District Public Park and nearby attractions such as Barr al Hikman and Al Maha Nature Reserve. © Apex Press and Publishing Provided by SyndiGate Media Inc. (

South Africa, AfDB sign $474.6mln loan agreement for Just Energy Transition
South Africa, AfDB sign $474.6mln loan agreement for Just Energy Transition

Zawya

time25 minutes ago

  • Zawya

South Africa, AfDB sign $474.6mln loan agreement for Just Energy Transition

South Africa and the African Development Bank (AfDB) have signed a $474.6m loan agreement aimed at supporting the implementation of the Just Energy Transition (JET). The loan agreement with the AfDB follows the first policy loan concluded in 2023 to support South Africa's Just Energy Transition. 'This new agreement highlights the importance of South Africa's partnership with the AfDB in advancing South Africa's development agenda. "It strengthens efforts to improve energy security measures, accelerate the decarbonisation of the economy, and enhance the socio-economic benefits of the energy transition, enabling inclusive economic growth and fostering job creation,' National Treasury said. This loan is part of the third Development Policy Operation, which includes participation from the World Bank, KFW Development Bank, Japan International Cooperation Agency, and the Organisation of the Petroleum Exporting Countries Fund for International Development (OPEC Fund) to support structural reforms to enhance the efficiency, resilience, and sustainability of the country's infrastructure services. It offers favourable concessional financial terms at a nominal value of $474.6m with a maturity of 15 years and a three-year grace period at an interest rate of a daily Secured Overnight Financing Rate (SOFR) plus 1.22%. 'The National Treasury wishes to express its appreciation to the AfDB for its continued partnership and support of South Africa's development objectives. 'This includes efforts to implement critical reforms in the energy and transport sectors, while also advancing the country's Just Energy Transition goals and meeting foreign currency commitments at lower interest rates.'

Oman: Muscat Stock Exchange index breaks 4,700-point barrier
Oman: Muscat Stock Exchange index breaks 4,700-point barrier

Zawya

timean hour ago

  • Zawya

Oman: Muscat Stock Exchange index breaks 4,700-point barrier

Muscat – The Muscat Stock Exchange's (MSX) main index recorded new gains last week, surpassing the 4,700-point threshold and extending its winning streak to five consecutive weeks. The index reached 4,777 points – its highest level since early November – before trimming gains and closing the week at 4,718 points, up 64 points overall. Sectoral indices also posted positive performances, led by the Industrial Sector Index, which climbed 116 points. The Services Sector Index rose by 78 points, the Financial Sector Index by 27 points, and the Shariah Index by approximately 8 points. This upward trend was supported by increased institutional investment in the MSX and growing investor optimism regarding improved financial results, following the recent announcement of listed public joint-stock companies' earnings for the first half of the year. Last week, the Muscat Stock Exchange recorded a market capitalisation gain of RO178.2mn, reaching RO28.821bn by the close of trading on Thursday. Trading value surged by 64% to RO135.1mn, compared with RO82.3mn the previous week. The number of executed transactions also rose by 26.5%, from 10,593 to 13,400. OQ Base Industries led trading activity, with trades valued at RO36.5mn – accounting for 27% of total trading value. Bank Muscat followed with RO22.2mn, Oman Flour Mills with RO18.7mn, OQ Exploration and Production with RO16.5mn, and Sohar International with RO12.7mn, representing 9.4% of the total. A total of 47 securities advanced last week, while 28 declined and 12 remained unchanged. Dhofar Power Generation Company posted the highest gain, rising 32.7% to close at 77bz. Building Materials Industries increased by 25.4% to close at 79bz, and Al Suwadi Energy climbed 17.5% to reach 94bz. Among the biggest losers, United Finance bonds fell 30% to close at 70bz. Barka Water and Power shares declined by 12.2% to 180bz, and Oman Arab Bank's 2024 mandatory convertible bonds dropped 9% to close at RO1. In a significant development, OQ Exploration and Production announced its intention to repurchase a portion of its listed shares on the Muscat Stock Exchange. The company plans to buy between 45mn and 60mn shares at market price. The repurchase process will commence on August 9 and continue until February 9, 2026, or until the targeted number of shares has been acquired. Following the announcement, OQEP's share price fell by 16bz – from 348bz to 332bz. The share had previously seen a price increase after the company's extraordinary general meeting on June 24 approved an amendment to its articles of association, introducing a provision related to share buybacks. Last week also saw the launch of Ahlibank's pre-emptive rights issue, which is open to shareholders from July 24 to 28. Valued at RO50mn, the bank announced that share allocation will take place on July 30. The offering, priced at 142bz per share, is part of Ahlibank's efforts to raise capital. Ahlibank's share closed at 150bz at the end of the week's trading, down two baisas from the previous close. Four transactions were executed, amounting to RO10,600. Meanwhile, the pre-emptive rights saw 51 transactions involving 91mn rights, valued at RO96,000, with prices ranging between one and two baisas. © Apex Press and Publishing Provided by SyndiGate Media Inc. (

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store