Sultanate’s Renewable Energy Investments Drive Energy Transition Goals

MUSCAT, Oman – Oman’s significant investments in renewable energy generation have positioned the country to surpass its 2030 hydrogen production target. The International Energy Agency’s (IEA) latest “Renewables 2024” report highlights Oman’s progress, particularly in green hydrogen production.

The IEA recognizes Oman, UAE, and Morocco as countries poised to exceed their national hydrogen production goals by 2030. Oman aims to produce at least 1 million tonnes of green hydrogen annually by installing sufficient solar and wind capacity.

Regional Renewable Energy Expansion

The report projects that Saudi Arabia will lead the region’s renewables capacity expansion with a 40% share of new growth between 2024 and 2030. Oman, UAE, Egypt, Iraq, and Morocco are expected to account for 44% of the growth, reflecting their ambitious energy transition targets.

Two key factors are driving this growth in renewables:

  1. Rising domestic electricity demand due to population and economic growth
  2. Investments in onshore wind capacity for domestic consumption

The IEA anticipates around 4 gigawatts (GW) of new onshore wind capacity development in the region by 2030. Oman, Saudi Arabia, and Egypt are at the forefront of this development. Oman currently has five wind-based Independent Power Projects (IPPs) in the pipeline, with a combined generation capacity of approximately 1 GW.

Oman’s Growing Green Hydrogen Sector

In addition to renewable electricity generation, Oman is also making significant strides in the region’s emerging green hydrogen sector. The IEA report states that renewable energy capacity for hydrogen production is expected to account for 10% of the region’s growth by 2030.

Oman has awarded developers low-cost land to build projects producing hydrogen for local industries and ammonia for export. The country aims to attract $40 billion in investments in its green hydrogen industry by 2030. Oman’s target is to produce 1 million tonnes of zero-carbon hydrogen annually. By 2050, Oman expects investment inflows to reach $140 billion, with green hydrogen production capacity increasing to 7.5-8 million tonnes per year.

As Oman continues to invest in renewable energy and green hydrogen production, the country is well-positioned to exceed its 2030 hydrogen production target. These efforts contribute significantly to the region’s energy transition goals.

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