A slew of incentives are available for investors in green hydrogen in Oman.
While the land has been identified in cooperation with the ministries of Defence, Housing and UUrban Planning, and Environment Authority, the Sultanate of Oman will be offering investors in hydrogen projects incentives such as minimum land fees, and waiving of land fees during developing stages.
The initial two blocks offered to investors will be in Duqm outside the free zone and the remaining four will be offered in Thamrait.
For phase 1, the first projects are to be awarded by Q1, 2023 and developers will be expected to deliver integrated projects, but common infrastructure will be tendered separately.
Once completed, Oman expects to be a key importer of green hydrogen to countries in Western Europe and Japan.
Najla al Jamali, CEO, Alternative Energy, OQ, said, “Oman’s energy mix is undergoing a stimulus shift as the country forges ahead in its drive to build a hydrogen-centric economy that will support Vision 2040 diversification efforts. As an Omani integrated energy group, OQ, represented by OQ Alternative Energy, is well poised to enable the collective efforts to achieve our national economic goals and reach net zero by 2050. Working closely with the Ministry of Energy and Minerals, and the Oman Sustainability Centre, OQ AE is chartering a clear pathway for decarbonisation and carbon neutrality. In addition to acting responsibly, we believe that the partnerships we are forging and projects that we are developing will place Oman on the global map for green hydrogen.”
It may be noted that the government has set target to achieve Net Zero Emissions in 2050, in line with the Paris Agreement’s objectives of limiting global warming to 1.5°C compared to pre-industrial levels. His Majesty Sultan Haitham bin Tarik recently mandated the creation of Oman Sustainability Centre, which will be a nodal agency to supervise and follow up plans for carbon neutrality.
Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, said, “Oman is committed to decarbonising and helping the world decarbonise. The pathway to net zero is an opportunity for Oman to create economic value, increase industrial competitiveness and attract investments to help diversify and strengthen the country’s economy. The Sultanate of Oman is blessed with abundant renewable resources positioning it as one of the most attractive nations to produce green hydrogen competitively and at large scale.”
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