Powering the Future: How Oman Is Building the World’s Green Hydrogen Corridor

Decarbonization remains a global priority as countries around the world seek to reduce their greenhouse gas emissions and mitigate the risks associated with climate change. The energy sector plays a pivotal role in this effort through the harnessing of renewable energy technologies such as solar, wind, geothermal, biomass, and hydropower. As part of the shift toward renewable energy, hydrogen has emerged as a key fuel due to its abundance, versatility, and potential to support decarbonization efforts across various industries.

Hydrogen: An Abundant, Underutilized Resource

Hydrogen is the most abundant element in the universe. It is colorless, odorless, non-toxic, and possesses a high energy density. While it is highly flammable—as the Hindenburg disaster in 1937 most notably demonstrated—hydrogenremains a critical industrial input. The gas has long been used to refine oil, produce ammonia and methanol, and manufacture steel and polymers. One kilogram of hydrogen delivers 2.4 times more usable energy than the same amount of natural gas, nearly three times more than gasoline, and approximately four times more than coal, making it an attractive energy carrier in a global energy market intent on transitioning away from fossil fuels.

Indeed, apart from its energy density, the primary advantage of hydrogen is that when used in a fuel cell, it produces only electricity, heat, and water—all without emitting greenhouse gases. However, hydrogen does not occur freely in nature and therefore must be extracted, typically from either water or hydrocarbons. The manner in which this extraction process occurs determines the fuel’s environmental impact. Most hydrogen today is produced through processes that emit carbon dioxide, contributing to approximately 2.2 percent of global greenhouse gas emissions. Therefore, the method of hydrogen production is critical to determine the extent to which hydrogen is truly a “clean” energy source.

Understanding Green Hydrogen

To this end, not all hydrogen is the same. Green hydrogen, as its name suggests, is produced by splitting water into hydrogen and oxygen through electrolysis, using electricity derived from renewable sources like solar, wind, or hydropower. This process generates minimal to zero carbon emissions. Other types of hydrogen, such as grey (derived from natural gas), blue (from natural gas with carbon capture), or pink (from nuclear energy), generate more carbon dioxide during their manufacture. As the cleanest form of hydrogen, green hydrogen has gained significant attention for its potential to support global decarbonization efforts, especially in sectors that are hard to electrify, such as heavy industry and long-haul transportation.

Although the global hydrogen market was valued at $130 billion in 2022, the sector remains in its infancy. The cost of green hydrogen production—primarily determined by the price of renewable electricity and electrolyzer technology—is the major barrier to scaling. Nonetheless, rising demand, supportive policy frameworks, and innovation in storage and transport systems are driving down costs and spurring investment.

Oman’s Renewable and Hydrogen Revolution

Like other Gulf nations, Oman’s economy has long been reliant on oil and gas. In 2023, the Sultanate produced 383 million barrels of crude oil and condensate, as well as 52 billion cubic meters of natural gas. While the hydrocarbonsector has traditionally driven economic growth in Oman, the government recognizes the need to diversify and decarbonize. As such, Oman has set an ambitious target to achieve net-zero emissions by 2050, joining regional peers like Saudi Arabia and the UAE. With vast swathes of uninhabited land, high solar irradiance, and steady wind speeds, Oman possesses some of the best natural conditions for renewable energy generation in the region.

Oman’s location at the crossroads of Asia, Africa, and Europe positions the Sultanate to become a global hub for green hydrogen. Oman plans to use desalinated seawater and renewable electricity to produce green hydrogen. Initially, hydrogen will be exported in the form of ammonia, necessitating investments in storage tanks and deepwater port infrastructure. According to the International Energy Agency (IEA), Oman could become the world’s sixth-largest exporter of green hydrogen by 2030. The Sultanate aims to produce over 1 million tons (Mt) of green hydrogen annually by 2030, capturing 61 percent of the Middle East’s hydrogen export market. By 2040, production could rise to 3.75 Mt, and by 2050, 8.5 Mt—enough to meet Europe’s current hydrogen demand. Notably, Oman has also signed a Joint Development Agreement (JDA) to establish the world’s first commercial-scale liquid hydrogen corridor between Oman, the Netherlands, and Germany. This agreement represents a crucial step toward positioning Oman as a global leader in the green hydrogen export market, with a liquefaction facility and innovative maritime vessels developed by ECOLOG services company supporting the transport of liquid hydrogen with zero boil-off to allow for the indefinite storage of liquid hydrogen without any evaporation or venting. On the European end, regasification terminals at the Port of Amsterdam will enable the hydrogen to be distributed across existing infrastructure to industrial consumers in the Netherlands and Germany.

Oman’s Domestic Green Initiatives

In alignment with Oman Vision 2040 and the 2022 National Energy Strategy, the Sultanate aims to generate 30 percent of its electricity from renewables by 2030. With domestic natural gas reserves projected to last only 10 to 20 more years, Oman is accelerating its transition to a green hydrogen economy. To manage this transition, Oman established in 2022 the Hydrogen Development Oman, or HYDROM. This independent entity is tasked with overseeing green hydrogen development and has already allocated 1,500 square kilometers of land for hydrogen projects, with a production potential of around 1 Mt per year. An additional 50,000 square kilometers—an area equivalent to the size of Slovakia—has been allocated in the governorates of Al Wusta and Dhofar for future green hydrogen development.
Oman has also launched the National Hydrogen Alliance, comprising 13 entities from the public and private sectors, academia, and research institutions. This alliance aims to coordinate efforts to produce, transport, and export clean hydrogen, as well as to facilitate its consumption domestically. It also seeks to foster innovation and ensure alignment with national energy diversification goals.

Of course, any successful sustainable energy strategy also requires coordination with industry and manufacturing. From green hydrogen to carbon-neutral steel, the Special Economic Zone at Duqm (SEZAD) is rapidly emerging as Oman’s green industrial hub of the future. The zone is not only focused on renewable energy projects, but is also a platform for various pioneering industries. To foster innovation, SEZAD has introduced Duqm Now, a quarterly forum that brings together visionaries, doers, and decision-makers from across Oman’s industrial and energy sectors to discuss how to advance SEZAD’s mission. The first session, “Up & Down the Green Stream,” took place in January 2025 and addressed how businesses can leverage and support the country’s ambitious green energy goals, particularly its target of achieving 30 percent of its electricity from renewable sources by 2030. Participants also explored how local companies can participate in Oman’s clean energy transition. Oman recently launched its third auction phase for green hydrogen project sites in Duqm, with awards expected to be announced in the second quarter of 2026. In this phase, 300 square kilometers of land have been designated for development, with developers invited to submit proposals for up to 100 square kilometers each. In addition to the green hydrogen they produce, developers may sell surplus renewable electricity to the national grid, creating a symbiotic relationship with the country’s broader energy transition goals.

With global investment in clean energy technologies soaring—surpassing $3 trillion in 2024—Duqm is positioned to capitalize on the demand for renewable power, interconnected electricity grids, and storage infrastructure. The Integrated Energy Valley within SEZAD offers the strategic location and infrastructure needed to support both local and international businesses in the renewable energy sector.
The Green Hydrogen Summit Oman (GHSO) 2025 will be held from December 18 to 20, 2025, further cementing Oman’s leadership in this sector. Funded by the Ministry of Energy and Minerals and HYDROM, the summit will convene stakeholders, including industry leaders, policymakers, and international investors, to explore the potential of green hydrogen. The event will feature a conference and exhibition showcasing pioneering projects, major investments, and the policy momentum propelling Oman’s hydrogen economy forward.

Oman’s embrace of green hydrogen represents a forward-looking commitment to clean energy, economic diversification, and environmental stewardship. By capitalizing on its natural geographic advantages and institutional capacity, Oman is well positioned to become a leader in the emerging global hydrogen economy. As the government’s actions suggest, through coordinated action and continued investment, the Sultanate can achieve its net-zero goals and contribute meaningfully to global decarbonization efforts.

The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views of Gulf International Forum.