Oman could be among the top green hydrogen exporters by 2030

Oman has the potential to become the sixth-largest hydrogen exporter globally by the end of this decade with the cost of producing the green molecule in the country seen falling to USD 1.6 (EUR 1.48) per kilogramme, the International Energy Agency (IEA) said in a recent report.

The country enjoys favourable conditions for the production and export of green hydrogen -- abundant solar and wind resources, vast areas of land for large-scale projects, existing infrastructure and a convenient location with access to import markets such as Europe and Japan.

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The Sultanate has already made progress in the implementation of its ambitious strategy that envisages producing at least 1 million tonnes of green hydrogen by 2030 and up to 8.5 million tonnes by 2050. Hydrom, the state-owned company that was established to oversee the development of the green hydrogen industry, has already put aside 1,500 sq km (579.2 sq mi) of land which would be enough to reach the 2030 production target.

The first round of the hydrogen auction has already been launched and the first projects were awarded earlier in June.

Based on Oman's targets and strategy and the assessment of announced hydrogen projects as of end-2022, the country could become the largest hydrogen exporter in the Middle East this decade, according to the report.

The IEA suggests that ammonia is likely to be the preferred hydrogen carrier until at least 2030 and estimates the supply cost of green ammonia from Oman at USD 450 per tonne over a distance of 10,000 km by the end of this decade. This is far below the USD 1,000 per tonne seen in 2022.

Although Oman already has existing fossil fuel infrastructure as it currently exports about 0.2 million tonnes of ammonia per year, this will not be enough to export the quantity projected in its strategy. According to IEA, the country will have to expand its capacity to export ammonia 20 or 30 times, adding more export infrastructure such as storage tanks and dedicated deepwater jetties. The report notes that the development of such facilities has to start in the next few years so that they can be utilised by 2030.

Earlier this month, OQ Gas Networks (OQGN), the sole operator of the gas transportation system in Oman, joined forces with Hydrom to explore the development of a green hydrogen network infrastructure in the Sultanate.