Oman eyes status as global hydrogen capital: OIA President
MUSCAT: Oman’s nascent green hydrogen industry, underpinned by as many as eight mega-scale projects to date, has the potential to position the country as the global epicenter of clean energy production and export, according to the head of Oman Investment Authority (OIA), a pivotal player in this emerging sector.
Abdulsalam al Murshidi, President – OIA, articulated this vision in an interview to The Business Year, a London-based global business news portal. He noted in particular the potential for Oman to become the likes of the US city of Houston, currently reputed as the Oil & Gas capital of the world.
“Green hydrogen is presently first on our agenda given that it is new, and we need to be ahead of the game. There is a great deal of competition, but Oman plans to be the hydrogen capital of the world, similar to Houston with regard to oil and gas,” Al Murshidi remarked. The comments come on the heels of landmark agreements signed recently by Hydrom – the orchestrator of Oman’s green hydrogen sector – awarding land blocks for a further two large-scale projects, taking the national total to eight to date. Investments in these eight projects are estimated to total around $48 billion, ensuring the delivery of an aggregate green hydrogen production capacity of around 1.4 million tonnes per annum by 2030.
Al Murshidi stressed the importance of collaboration in crystallising this vision. “We do not yet have the full value chain, though we are seeking partnerships globally to bring it to Oman. However, in terms of resources, we have the right ingredients to be at the top when it comes to investment potential in renewable energy. We believe Oman should be among the top three in the world when it comes to competitiveness in green hydrogen,” the official stated.
Boding well for Oman’s success in this increasingly competitive global marketplace are two factors: Firstly, the abundance of solar and wind resources necessary to fuel renewable hydrogen production, and perhaps more crucially, the presence of underlying legal frameworks pivotal to fostering the growth of this new industry – a prerequisite that is missing in many other countries pursuing similar ambitions. “We run everything through open auctions and global participation and have received higher interest than expected. The Omani government, including the Ministry of Energy and Minerals and OIA, has set an ambitious strategy for this goal,” Al Murshidi emphasized. Oman Investment Authority, the integrated sovereign wealth fund of the country, is set to play a significant part in the growth of this new sector, the President said.
“OIA and its companies are also working on projects across the H2 industry value chain, such as electrolyzers, storage, and shipping. The aim is to localize the technologies and industries needed to produce, store, utilize, and export hydrogen.”
But he acknowledged challenges along the way, notably in the scaling up of technologies necessary to produce cost-competitive renewable hydrogen, as well as building out the underlying common infrastructure.
OIA, through its subsidiaries, is set to play a major part in key aspects of the green hydrogen value chain. ‘National Champions’ among its subsidiaries will participate in the equity of key projects, develop the common infrastructure, partner with international organisations in establishing hydrogen transport corridors, and explore downstream green manufacturing opportunities, among other prospects.
SOURCE: OMAN DAILY OBSERVER
Date: 16 May 2024
MUSCAT: Oman’s nascent green hydrogen industry, underpinned by as many as eight mega-scale projects to date, has the potential to position the country as the global epicenter of clean energy production and export, according to the head of Oman Investment Authority (OIA), a pivotal player in this emerging sector.
Abdulsalam al Murshidi, President – OIA, articulated this vision in an interview to The Business Year, a London-based global business news portal. He noted in particular the potential for Oman to become the likes of the US city of Houston, currently reputed as the Oil & Gas capital of the world.
“Green hydrogen is presently first on our agenda given that it is new, and we need to be ahead of the game. There is a great deal of competition, but Oman plans to be the hydrogen capital of the world, similar to Houston with regard to oil and gas,” Al Murshidi remarked. The comments come on the heels of landmark agreements signed recently by Hydrom – the orchestrator of Oman’s green hydrogen sector – awarding land blocks for a further two large-scale projects, taking the national total to eight to date. Investments in these eight projects are estimated to total around $48 billion, ensuring the delivery of an aggregate green hydrogen production capacity of around 1.4 million tonnes per annum by 2030.
Al Murshidi stressed the importance of collaboration in crystallising this vision. “We do not yet have the full value chain, though we are seeking partnerships globally to bring it to Oman. However, in terms of resources, we have the right ingredients to be at the top when it comes to investment potential in renewable energy. We believe Oman should be among the top three in the world when it comes to competitiveness in green hydrogen,” the official stated.
Boding well for Oman’s success in this increasingly competitive global marketplace are two factors: Firstly, the abundance of solar and wind resources necessary to fuel renewable hydrogen production, and perhaps more crucially, the presence of underlying legal frameworks pivotal to fostering the growth of this new industry – a prerequisite that is missing in many other countries pursuing similar ambitions. “We run everything through open auctions and global participation and have received higher interest than expected. The Omani government, including the Ministry of Energy and Minerals and OIA, has set an ambitious strategy for this goal,” Al Murshidi emphasized. Oman Investment Authority, the integrated sovereign wealth fund of the country, is set to play a significant part in the growth of this new sector, the President said.
“OIA and its companies are also working on projects across the H2 industry value chain, such as electrolyzers, storage, and shipping. The aim is to localize the technologies and industries needed to produce, store, utilize, and export hydrogen.”
But he acknowledged challenges along the way, notably in the scaling up of technologies necessary to produce cost-competitive renewable hydrogen, as well as building out the underlying common infrastructure.
OIA, through its subsidiaries, is set to play a major part in key aspects of the green hydrogen value chain. ‘National Champions’ among its subsidiaries will participate in the equity of key projects, develop the common infrastructure, partner with international organisations in establishing hydrogen transport corridors, and explore downstream green manufacturing opportunities, among other prospects.
SOURCE: OMAN DAILY OBSERVER
Date: 16 May 2024
