Green hydrogen sector to unlock major job and localisation opportunities in Oman

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MUSCAT: The emerging green hydrogen sector in Oman presents various employment and localisation opportunities across all supporting sub-sectors, according to recent remarks by the Minister of Energy and Minerals and Chairman of Hydrom, Eng Salim bin Nasser al Aufi.

Speaking at the launch of the Green Hydrogen Ecosystem Readiness Laboratory earlier this week, Al Aufi shared that an estimated 40 million solar panels would be required to actualise the country’s goals of producing 1 million tonnes per annum of green hydrogen powered by 35 GW of renewable energy by 2030 “Today, the Omani market in terms of renewable energy has become a giant market, capable of accommodating many industries. The numbers I mentioned are not just for effect, but also for the private sector to understand that we need forty million solar panels to reach the 2030 target. This means that the local Omani market has become promising and capable of truly absorbing these industries,” Al Aufi said.

But he emphasised the need to look beyond the sole objective of manufacturing solar panels and instead focus on developing a wider manufacturing ecosystem. ”We must start thinking about these industries, not just in terms of solar panels, but the panel needs a frame, and this frame requires bases, cables, installation, and connectors for the devices. When we visited some sites, we found many things besides the panel itself that can be manufactured in the country,” he stated.

Furthermore, he highlighted the significance of planning towards the future.

“Certainly, the first project will not be installed 100 per cent by Omani personnel nor will it be 100 per cent locally manufactured, meaning not everything is produced in the country. However, we need to consider future projects to determine whether we will continue to rely on importing items and having them installed by international workers, or whether we will start planning today on which items to manufacture domestically and which professions we can train the local population to perform.” Importantly, continuity is also crucial to actualising the nation’s goals of achieving the target of producing 8-9 million tonnes of green hydrogen per annum by 2050, the Minister stressed.

“There needs to be continuity. This is essential because we manage 3-4 projects annually, and our target for 2050 is not merely one million tonnes of green hydrogen but 8-9 million tonnes. To achieve this goal, we need approximately 300 million solar panels, indicating that expansion is necessary, but action must be taken today.”

According to initial estimates shared by the Minister, a labour force of approximately 70,000 – 80,000 would be required to actualise each of the 8 signed green hydrogen projects in the country, which aim to produce 1 million MT per annum of green hydrogen by 2030. Additionally, approximately 2000-3000 wind turbines would need to be installed, in addition to the previously mentioned 40 million solar panels. Together, they open up various opportunities across various sectors, he noted.

According to Eng Abdulaziz al Shidhani, Managing Director of Hydrom, the local content track has been added to the Green Hydrogen Laboratory’s remit, which previously focused only on four main tracks: logistics, regulations, construction and manpower.

He shared that despite its intersection with the other sectors, it was crucial to sufficiently address the axis, in order to actualise the laboratory’s goals of achieving economic diversification. Total investment in the 8 green hydrogen projects signed to date is estimated at $127 billion.

According to the National Strategy for the Orderly Transition to Net Zero, the green hydrogen sector is expected to potentially contribute an additional 50 per cent to the GDP by 2050.

Furthermore, a report by the International Energy Agency (IEA), Oman’s green hydrogen sector is expected to generate annual revenues of $2 billion from the export and domestic use of green hydrogen starting from 2030, with the potential of this figure growing to “double-digit USD billion levels” in the long term. A report by business management consulting firm Guidehouse Germany also estimates that the sector is expected to create 291,000 to 381,800 employment opportunities based on 2050 goals.