Oman is making serious strides in hydrogen fuel adoption. Once dismissed due to technological bottlenecks, hydrogen is now regaining traction as a viable renewable energy alternative.
As of 24 February 2025, Oman has inaugurated its first hydrogen fuel station, a landmark development in the sultanate’s push towards achieving ambitious net-zero targets. Hydrogen fuel adoption is one of several initiatives aimed at ensuring long-term decarbonisation.
While it may sound clichéd, this refuelling station marks a new chapter in Oman’s energy sector, bringing the nation one step closer to its goal of producing one million tonnes of green hydrogen by 2030.
Why Hydrogen?
Oman has prioritised hydrogen as a key driver of its renewable energy ambitions due to its strong potential for large-scale production and use. In particular, the country is well positioned to generate significant amounts of ‘green’ hydrogen, which is produced using renewable energy sources.
A 2023 report by the International Energy Agency (IEA) outlined the broader implications of hydrogen development. Executive Director Fatih Birol stated:
“Oman is an oil and gas producer country that is taking an enlightened approach to its energy future, with a clear long-term vision and strong net zero ambitions. Thanks to its huge potential for low-cost solar and wind, renewable hydrogen is set to bring multiple benefits to Oman.”
Green hydrogen presents a highly effective means of rapidly reducing carbon dioxide emissions, at a time when alarm bells over the urgent need to transition away from fossil fuels are ringing louder than ever.
Vehicle-emitted CO2 has significantly worsened air quality in major cities across the Global South, leading to rising incidences of respiratory illnesses, premature deaths, and overall unhealthier living environments.
Unlike fossil fuels, hydrogen combustion primarily produces water vapour and warm air. However, hydrogen derived from steam methane reforming does generate some volatile organic compounds and carbon monoxide. Even so, it still reduces harmful emissions by up to 80% compared to conventional fossil fuels.
This represents a significant opportunity for Oman to emerge as a leader in renewable energy. By spearheading large-scale hydrogen fuel adoption, the country could play a pivotal role in the future of automotive propulsion. Hydrogen fuel cells may also serve as a practical alternative in regions where extensive electric vehicle (EV) charging infrastructure is unfeasible.
The Hydrogen Energy Supply Chain (HESC) project, which aims to establish an end-to-end hydrogen production model, has the potential to generate 225,000 tonnes of hydrogen annually, cutting carbon dioxide emissions by approximately 1.8 million tonnes.
Integration Into the plan
Despite its promise, hydrogen adoption faces significant hurdles.
Hydrogen fuel is costly to store and requires highly specialised machinery for efficient utilisation. Like compressed natural gas, hydrogen must be kept in liquid form under extremely high pressure, making storage both expensive and potentially hazardous without strict safety protocols.
Current hydrogen-powered vehicles use fuel cells to convert chemical energy into electricity, but these cells are expensive due to their complexity and reliance on costly materials such as platinum.
Shell Oman appears to have developed a more efficient storage solution. Reports indicate that the hydrogen refuelling station near Muscat International Airport can produce up to 130 kilograms of hydrogen fuel per day. Notably, the station generates its own hydrogen, ensuring a steady supply to meet daily refuelling demands. But who will be using it?
In January, it was announced that a fleet of hydrogen-powered taxis would operate from Muscat International Airport. This initial fleet of 15 vehicles serves as a test case for broader adoption, either through vehicle conversions or the introduction of factory-produced hydrogen cars.
Zooming out to Oman’s wider hydrogen strategy, most hydrogen production will involve electrolysis of desalinated seawater, powered by renewable energy. The country boasts outstanding onshore wind and solar resources, along with ample land for large-scale projects. Initial production efforts began in Duqm and Salalah in 2022.
Additionally, Oman’s existing fossil fuel infrastructure may be repurposed for low-emission fuels. The country is also strategically located along major trade routes between Europe and Asia, providing an ideal gateway for exporting renewable hydrogen and hydrogen-based fuels. Oman’s extensive experience in LNG and ammonia exports further enhances its hydrogen prospects.
To oversee and guide hydrogen policy, the government established Hydrogen Oman in 2022 as an independent entity. In its first auction process, land for renewable hydrogen production has already been allocated to six companies.
Speaking to ESG Mena, Jonas Moberg, CEO of the Green Hydrogen Organisation (GH2), highlights Oman’s strategic potential in the global hydrogen market:
“Oman has some of the greatest potential in the world to become a significant producer of green hydrogen, green ammonia and other products requiring green fuels. It needs to demonstrate that it has a stable business environment with a competitive cost structure.”
By 2030, Oman will need to invest nearly $33 billion to scale up renewable hydrogen production to one million tonnes. An additional $4 billion will be required to boost the share of renewables in the national electricity mix to 20%.
Meeting these targets would significantly advance Oman’s clean energy transition, yielding substantial benefits such as a three billion cubic metre reduction in domestic natural gas consumption and the prevention of seven million tonnes of carbon dioxide emissions annually.
What’s Next?
The next phase of development will involve multiple hydrogen production plants across Oman, including in Al Dhahirah, which spans 8,200 square kilometres, Al Dakhiliyah, covering 5,180 square kilometres, Al Wusta and Duqm, which together amount to 15,930 square kilometres, Al Jazir, encompassing 25,700 square kilometres, and Dhofar, which extends across 7,910 square kilometres.
In total, 50,000 square kilometres have been earmarked for national hydrogen projects. Hydrogen Oman remains central to efforts to expand capacity for eventual exports, targeted for 2030. The bidding process for these projects is fully open to international participants.
Dr Firas al-Abduwani, a key figure in Oman’s hydrogen initiative, explains that the approach remains flexible:
“We’re keeping it very flexible. We’re allowing the developers themselves to choose the end product, whether they want it to be hydrogen itself and transport it in a liquified manner, or with a liquid organic carrier; that’s up to them. Whether they want to move with ammonia or methanol – that is also open to them if they want to bring some of the hard-to-abate sectors and industries and bring them as part of the solutions (…) Responsibility for the offtake of the end-product will also be the responsibility of the developer.”
This approach ensures that bidders take on responsibility for every aspect of the hydrogen supply chain. It also aligns with Oman’s recognition that international collaboration and strategic partnerships will be crucial for the success of its green hydrogen economy.
Engaging with global markets, facilitating technology transfer, and fostering knowledge-sharing will be essential. Acknowledging this, Oman has been actively pursuing partnerships with nations and companies experienced in hydrogen production and utilisation.
As of 2025, it is increasingly clear that the future of energy infrastructure will rely on a diverse mix of renewable technologies. Electric vehicles, solar, wind, geothermal, hydroelectric and hydrogen will all play simultaneous roles. Maintaining such a complex system will require substantial investment, not only in technology and infrastructure but also in developing a skilled workforce.
The success of Oman’s hydrogen strategy will depend on its ability to cultivate engineers, technicians and supply chain experts capable of sustaining the entire ecosystem.
Only time will tell how effective this bold move into hydrogen fuel will be. What is certain, however, is that Oman is determined to lead the way in this new era of sustainable energy.
By: Omar Ahmed