Oman is moving forward with green hydrogen projects, with the first Final Investment Decision (FID) expected in 2026-27. Over the past two years, eight consortiums have been awarded land blocks in central and southern Oman to develop large-scale green hydrogen production. These projects aim to produce at least 1 million tonnes of green hydrogen by 2030.
Speaking at the ‘Together We Progress’ forum, Oman’s Minister of Energy and Minerals, Eng Salim bin Nasser al Aufi, confirmed that the FID would mark the shift from planning to execution. He also stated that Oman would continue oil production and exports as long as costs remain below global market prices. The private sector is driving most investments in oil and gas, reducing the government’s financial burden.
Renewable energy projects are expanding, with solar power playing an increasing role in electricity generation. In 2024, renewable energy supplied an average of 9 percent of Oman’s electricity consumption, with peaks reaching 32 percent on some days. The government aims to increase the share of renewables to 30 percent annually by 2030. Wind power capacity is also set to grow with the planned award of contracts for four new wind-powered Independent Power Projects (IPPs) in different locations.
Apart from large-scale projects, Oman has smaller renewable energy initiatives that are less covered. The Ras Madrakah Solar Plant, with a 6 MW capacity, supports local industries in the Al Wusta region. The Dhofar Agricultural Solar Project provides solar-powered irrigation for farms in southern Oman. In Al Batinah, a small 2.5 MW solar installation supplies power to remote villages. The Mahout Wind Demonstration Project in Al Wusta tests wind energy feasibility for future expansion.
Oman is also focusing on mineral resources. The government has introduced a new investment strategy for mining, awarding 12 concession areas to Minerals Development Oman (MDO) for exploration. These concessions allow for longer exploration periods and broader mineral extraction.
