Oman has formed a national hydrogen alliance in order to build an industry for the production, transportation, and use of the fuel, which Gulf governments are increasingly turning to as a commercial opportunity to fulfil the global need for clean energy. Oman’s alliance comprises 13 governmental and private sector entities, including government agencies, oil and gas companies, educational and research institutes.
The project is part of Oman’s Vision 2040 economic transformation plan’s energy diversification goals. The country announced in May that a partnership led by state-owned oil company OQ will construct a solar and wind energy-powered plant capable of producing millions of tonnes of zero-carbon green hydrogen per year. To manufacture hydrogen at full capacity, the project will use 25 GW of sustainable solar and wind energy.
Green hydrogen, which is produced by splitting water into its two components using renewable energy, is increasingly being regarded as a fuel to replace fossil fuels and their significant carbon emissions.
Gulf oil-producing countries are attempting to diversify their economy by developing new industries and revenue streams, including a significant push into renewable energy. Saudi Arabia is working on a $5 billion hydrogen project in the NEOM high-tech commercial zone, and Abu Dhabi intends to manufacture and export hydrogen as a fuel.