What makes Oman special is its multi-fuel story, starting from natural gas and then the potential to move from natural gas to blue hydrogen. The addition of green hydrogen is very important because by having blue and green hydrogen, you open up the possibility for companies to have much more flexibility in terms of what to produce for local consumption and what you can export.

I think that Oman has a tremendous advantage compared to other countries in the region when it comes to green hydrogen production. because of the intermittency issue. This is because Oman don’t an issue with intermittency, as it is blessed not only with solar, like the rest of the region, but also with wind.

At Deloitte, we look forward to playing a role both on the blue and the green side as well, not only in terms of understanding the market potential in Oman, but also in terms of helping companies deliver on their in-country value (ICV) plans. We are playing our role in terms of supporting companies in their bids for land blocks for development purposes related to green hydrogen, ICV, and so on. After all, the green hydrogen story is not only about the energy transition, but also industrial diversification. So it’s a fantastic opportunity for Oman to build up a new clean-energy based industry.

Moreover, there is a debate going on as to where will the green energy ecosystem be developed in the Middle East. Will that be in Saudi Arabia? Will it be in the UAE? Or will it be in Oman? And I think there’s a fantastic opportunity there for Oman to get it done here, but we have to get it right. You need to really incubate that right now to make sure that you get ahead of the rest in the region.

I think what Oman is doing really well is that they have issued a country strategy with specific targets. That should give comfort to stakeholders that Oman is serious about implementing its green hydrogen strategy. Oman has also gone into the specifics of even how much of CCS is needed, how much green electricity, and so on, all of which also give comfort. We are aware that Oman is working towards a package of incentives that hopefully will be announced in the next three to four months. That is another step towards further confirming the commitment of the country towards clean energy.

Furthermore, the fact that Oman has announced multiple blocks for green hydrogen investment – and not just one – provides credibility and confidence for people to come forward and invest in the country. Besides that, with different kinds of organizations and companies getting involved in this sector, investments are happening at a big scale by players who know how to operate in the energy space. And that gives confidence too!

Certification:

Yes, certification issues will initially be problematic because an expensive new fuel like green hydrogen is being introduced into the system. But certification is not just an issue for Oman, but for the wider global industry. I think Oman should take the lead or play a big role in defining a certification system primarily because of the different colours of hydrogen fuels it is looking to produce. At the very least, it should take the lead in helping set up certifications in the region.

Oman is also very well-positioned to serve the Asian markets, such as Japan and Korea, but also potentially Europe. The fact that you can serve both, I think gives Oman the flexibility, but also the ability to define standards and guidelines that help you serve both markets. If you look at other countries in the region, a large part of their production will be for domestic consumption, whereas Oman will be very much export-driven in its strategy. Accordingly Oman will need to be actively involved in the international landscape to get these things right.

Deloitte, for its part, works with stakeholders across the whole ecosystem because it’s important to look at the whole value chain and not just parts of it. So we work with developers, operators, distributors, customers, investors as well as the public sector and the regulators. If you want to move things forward, you need to make sure that everybody is involved because it’s about incubating a whole new sector. You can’t do that with just a developer or an operator; you need to involve everybody else – and the government has also an essential role to play in that.

In-Country Value:

Imagine as a developer you have the ability to secure the needs of part of the local market instead of just exporting your green energy output! This approach will also help investors de-risk their projects. By serving the local market, you also do not have to convert your green molecules into ammonia for shipment overseas.
Secondly, Oman is a very unique country, even within the region. Doing business in Oman is very easy. The talent is available as well. So I think the conditions for investors to develop and meet the ICV targets is facilitated.

This is also true for establishing manufacturing capacity linked to green energy projects. If there is clarity on what the demand will be, whether solar panels, wind turbines, electrolyzers and so on, combined with a regulatory framework, it will attract the right investments into the country to build the local ecosystem. What Oman gains is potentially a whole new manufacturing sector that didn’t exist before.

EDF has been actively involved in the utility sector of Oman for years now. We have teams present there, particularly focused on opportunities in renewable projects for which we have been participating in a couple of tenders – both large utility-scale projects as well as small ones. One such tender floated by Tanweer (part of Nama Group) aims to decarbonize its operations in remote areas either by replacing or reducing existing diesel generation capacity with solar PV systems.

So, yes, Oman is definitely part of the countries that we believe we have the expertise and experience to help with the decarbonization of the electricity sector. Our goal is to support the Sultanate in achieving its Net Zero carbon neutrality target by 2050.

While our interest in Oman has focused on solar projects, EDF Renewables is also very strong in wind energy development as well. Over 50 per cent of our renewables portfolio around the world comprises on wind energy projects – both onshore and offshore. We strongly believe in wind projects because they ensure a high load factor and operate in the evening when solar energy declines for the day. So, combined with solar, they contribute close to the base load.

 ICV:

In Country Value (ICV) development, to be honest, can be quite challenging, particularly as any project has to be both economical and robust. But EDF is committed to delivering on ICV by exploring tangible solutions. To give you an example, we are presently building a very large wind farm in South Africa which will use towers made of local concrete instead of steel towers. This involves local contractors, create business and job opportunities, tax revenues for the government, and so on.

Looking at the Sultanate with its advantageous location overlooking the Indian Ocean, it is well-positioned to target Europe and Asia with its green energy exports. It has fantastic natural resources in the form of solar and wind. Oman has all it takes to become a major player in the region to lead the energy transition. After all, I still remember that the Sultanate was the first country in the region to launch power projects based on the Independent Power Project (IPP) model.

EDF Renewables is also keen to be part of the green hydrogen industry in Oman. I’m happy to see that with the recent agreement signings by Hydrom, a lot of momentum has already been created. EDF will be keen to be involved across the supply chain all the way through to production of hydrogen or its derivatives. To achieve the most robust, most bankable and most economical project, you would also need to know who your offtaker or end-customer is. Accordingly, we will be looking to partner with large offtakers in Asia as well as Europe. As you know, we have a leading role in Europe as a utility for electricity generation, but increasingly as a hydrogen producer as well. Our ambition is to build partnerships that cover the entire supply chain all the way to the offtaker.

The recent signings by Oman for the development of green hydrogen blocks is great news indeed for the Sultanate. As a country, Oman is well-positioned to really play a key role, not just in the region’s energy transition, but globally as well.

I was privileged to be associated with one of the world’s first green ammonia projects which, incidentally, is being implemented at Duqm in the southeast of the country. I was the Principal Consultant for that project. 

It’s a reflection of the abundance of economical natural resources that are available in Oman, and taking into consideration the location as well, the Sultanate is positioned to play a key role in this exciting market.

Howden already has presence in the Gulf region general and the Omani market in particular. We have been serving these markets for years, particularly in the Oil & Gas and mining sectors, among others. When it comes to renewable hydrogen, we have been in contact with all the major players in the Omani market and we are looking forwards to taking things to the next level. We are excited about the potential future for the hydrogen in Oman.

As for the exciting developments under way in Oman, our position is that we like to engage as early as possible with the project developers and our partners, so we can add value to their projects and the right solution is applied. This early involvement allows us to ensure optimisation across the life cycle of the project from both a CapEx and OpEx perspective.

Howden, as you know, is a global leader in mission-critical air and gas handling solutions including steam turbines and hydrogen compression solutions. With over 165 years of expertise in this field, we support our customers across a number of industries with innovative solutions that make a cleaner and more sustainable future possible. These solutions range from hydrogen processing, renewable thermal energy, demand side energy efficiency improvements, through to carbon capture and storage.