IEA emphasises Oman's potential as a renewable hydrogen hub

The International Energy Agency (IEA) has endorsed Oman's "high-quality renewable energy resources" and "vast tracts of land" as ideal for producing low-emission hydrogen.

PHOTO: The Asyad Terminal at Port of Duqm, Oman. Asyad Terminal

The Sultanate of Oman aims to produce at least 1 million mt/year of renewable hydrogen by 2030, and 3.75 million mt/year by 2040. It further aims to reach 8.5 million mt/year by 2050, which is one of the most ambitious targets in the world.

In its latest report, the IEA estimates that the oil-producing nation can easily achieve at least 30% of its 2030 target and 39% of its 2040 target without overstretching its existing resources.

Oman’s strategic advantage

This is mainly due to the fact that the Sultanate has ample access to land, and to wind and solar power resources to develop large-scale projects, argued Fatih Birol, the executive director of the IEA.

Oman is also “conveniently situated along important market routes between Europe and Asia, with existing fossil fuel infrastructure that can be used or repurposed for low-emissions fuels,” said Birol. Oman's "extensive expertise" in ammonia and LNG storage and transportation could be applied to green hydrogen and hydrogen-derived fuels, such as ammonia and methanol, he added.  

However, the IEA argues that hydrogen exports from Oman will likely rely heavily on shipping since most of it will be transported as ammonia to buyers in Europe and Asia Pacific. As a result, there is an urgent need for new port infrastructure to handle ammonia. Only three of the country's ports - Salalah, Sohar and Sur - currently have “existing ammonia infrastructure and host ammonia terminals”.

Developing nations poised to lead the way

The IEA's advocacy also supported numerous arguments that developing nations will benefit the most from the shipping sector's green transition due to massive opportunities for green bunker fuel production. Commodity trader Trafigura has argued that developing countries in the Global South will produce e-fuels at lower prices than developed countries in the Global North.

As one of these developing nations, Oman aspires to become a significant fuel producer for the shipping industry. The Omani state-owned oil company OQ is investigating the production and supply of green ammonia and methanol in the Omani ports of Duqm and Salalah. Maersk has also been exploring Oman as a potential producer of green fuels to power its upcoming fleet of methanol-fuelled container ships.

The IEA’s endorsement could act as a catalyst for further collaboration between the shipping industry and Oman to produce low- and zero-emission marine fuels on a large scale and at lower costs.

By Konica Bhatt

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