Oman's rise to green hydrogen: A new engine for the Middle East's energy transition
It is worth noting that the recent adjustment of clean energy policies in some countries such as the United States, and the announcement of energy giant British Petroleum (BP) to reset its renewable energy strategy, so that the uncertainty of the global energy market has risen. However, Oman's policy makers and investors are still actively promoting the development of renewable energy, indicating that its determination to transition to energy will not be swayed by external factors.
Although Oman is actively promoting green energy development, oil and gas remain the core pillars of the country's economy. Minister Al Aufi stressed that as long as the cost of producing oil is lower than the global market price, Oman will continue to extract and export oil. This pragmatic energy policy has enabled Oman to maintain financial stability in a highly competitive global energy market.
At the same time, Oman's oil and gas sector investment is largely undertaken by private companies, and the government has relatively little pressure on its hydrocarbon spending budget. This model not only improves the degree of marketization of the industry, but also attracts a large influx of foreign capital, providing more capital support for the future adjustment of the energy structure.
Oman's renewable energy sector has gained momentum in recent years. Data show that in 2024, renewable energy generation accounted for 9% of the country's total electricity consumption, and even as high as 32% in some periods. This growth is in line with the country's goal of achieving an average annual renewable energy increase of 30% by 2030.
In the future, Oman plans to further increase its wind energy development. This year, the country will award four new wind Independent Power Projects (IPPs) contracts to further boost wind power capacity. This initiative will significantly enhance Oman's clean energy supply and reduce its dependence on traditional fossil fuels.
In addition to the energy sector, Oman's mining sector is also undergoing structural reform. The government has launched a new investment strategy to optimize the way mineral resources are explored and developed. Oman Investment Authority (OIA), in partnership with Oman Mineral Development Company (MDO), has awarded 12 significant mining areas to MDO for management. The exploration cycle of these fields is 5-6 years, followed by an investment period of up to 25 years. This policy adjustment has made the development of Oman's mineral resources more attractive, attracting the attention of domestic and foreign investors.
The results of the policy reform are beginning to show. Minister Al Aufi revealed that Oman Mining has exported copper concentrate for the first time in the last 10-15 years, a breakthrough that not only means industry growth, but also creates new export revenue for Oman. In addition, although there is gold associated with copper deposits, the government has chosen to retain the gold to increase the export value of copper concentrates because of the high cost of mining and refining them. This strategy shows that Oman has adopted a more refined and market-oriented management approach to the utilization of mineral resources.
Oman's green hydrogen strategy not only contributes to its own energy transition, but could also have a profound impact on the global energy market. First, as the global demand for low-carbon energy rises, green hydrogen will become a key product for energy trading in the future. If Oman can meet its 2030 hydrogen production targets on schedule, it will occupy an important position in the international market and become an important supplier to energy importing countries in Europe and Asia.
Second, Oman's development model may provide lessons for other Middle Eastern countries. Saudi Arabia, the United Arab Emirates and other countries are also promoting green hydrogen energy plans, and Oman's practical experience can provide valuable references for regional cooperation and market layout.
First, please LoginComment After ~