Oman emerges as a prime hub for GH2 investments

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Oman is solidifying its position as a premier destination for green hydrogen investments, leveraging its abundant renewable energy resources, strategic location and business-friendly environment. Speaking at the inaugural GH2 Investor Day, Eng Abdulaziz bin Said al Shidhani, Managing Director of Hydrom, outlined the Sultanate of Oman's ambitious plans to become a global leader in green hydrogen production while fostering economic diversification.

A COMPETITIVE EDGE IN THE GLOBAL MARKET

Al Shidhani highlighted Oman’s unparalleled advantages in the renewable energy sector, particularly its abundant wind and solar resources. “We are blessed with one of the best resources, positioning us competitively in this new energy field,” he stated. Over 50,000 square kilometres of land have been allocated for green hydrogen projects, supported by legislation granting full sectoral control to streamline project development.

Oman’s strategic location between Europe and Asia provides direct access to major markets such as Germany, Japan, South Korea and the Netherlands. Its export capabilities are bolstered by three internationally managed ports — Duqm, Salalah and Sohar — enhancing the resilience of its supply chain.

“Our strategic location halfway between major global markets ensures a resilient supply of green hydrogen even in worst-case scenarios,” Al Shidhani explained.

LONG-TERM AMBITIONS AND MILESTONES

Since launching its green hydrogen journey in October 2022, Hydrom has signed eight long-term agreements worth $50 billion. These projects aim to generate 18 GW of fuel-to-gas capacity and 35 GW of renewable energy, producing 1.5 million tonnes of green hydrogen annually by 2030.

Looking ahead, Hydrom targets producing between 3.3 and 3.8 million tonnes per year by 2040, with a long-term goal of reaching 8.5 million tonnes annually by 2050. “The signings we’ve made so far put us in a very comfortable position to achieve our 2030 target,” Al Shidhani affirmed. “But we remain ambitious and are already working towards our 2040 and 2050 goals.”

DRIVING ECONOMIC DIVERSIFICATION

Al Shidhani emphasised that Oman’s green hydrogen strategy goes beyond export revenues. The initiative is expected to catalyse economic diversification by creating jobs, driving technological innovation and boosting key sectors like industrial manufacturing, mining, agriculture and sustainable tourism.

“This journey is not just about producing green molecules and exporting them. It’s about creating a maximum impact on the entire economy,” he said, linking the hydrogen industry to Oman Vision 2040 broader goals.

GLOBAL PARTNERSHIPS AND MARKET EXPANSION

Hydrom’s success has been built on strong partnerships with 22 international companies, with OQ serving as a national partner. The company plans to launch its next major investment round by March 2025, incorporating new market-driven project models such as “double-sided” and “downstream” options.

“We are listening to the market and adapting our strategies accordingly,” Al Shidhani noted. “By early 2025, we aim to launch Round 3, ensuring new and existing partners have opportunities to participate.”

Hydrom’s transparent qualification and bidding process has been crucial in attracting serious, capable investors. According to Al Shidhani, Oman’s openness, coupled with its results-driven approach, has established the country as a reliable investment destination.

“We are not just strategising — we are delivering,” he concluded. “We listen to our partners and focus on concluding deals on a win-win basis.”