The Sultanate of Oman is embarking on a transformative journey towards carbon neutrality and renewable energy sources. Mohsin bin Hamad al Hadhrami (pictured), Under-Secretary of the Ministry of Energy and Minerals, unveiled in a recent interview with CNN the country’s strategy for energy transition and carbon neutrality, highlighting its ambition to establish a leading global position in exporting green hydrogen.

As the world moves towards a more sustainable future, Oman aims to achieve carbon neutrality by 2050.

Central to this goal is the utilisation of green hydrogen, which will play a pivotal role in diversifying the country’s energy sources.

Al Hadhrami highlighted Oman’s aspiration to export green hydrogen to European and Asian markets while also promoting its use in domestic industries.

Oman is implementing various other methods to reduce emissions, such as improving energy efficiency, rationalising consumption, and accelerating the transition to renewable energy in electricity production.

Al Hadhrami emphasised that by 2030, Oman aims to generate 30 per cent of its electricity from renewable sources and plans to leverage green hydrogen for local industries while exporting it and its derivatives.

In terms of attracting investments and financing environmentally friendly projects, Oman has established a clear regulatory framework to lure investors and encourage funding for renewable energy projects. Both local and international banks have exhibited a growing interest in supporting clean energy ventures in Oman, reflecting a positive trend towards sustainable financing.

However, Al Hadhrami also outlined the challenges Oman faces on its path to carbon neutrality. Achieving a balance between supply and demand, policy regulation and improving the infrastructure to support renewable energy growth are among the key hurdles.

He stressed the importance of readiness before initiating projects, emphasising that production chains, expertise, equipment, tools and technologies need to be in place, particularly considering the expected $38 billion investment in these projects. Oman’s commitment to sustainability extends beyond energy production.

The country is actively working towards fostering a green economy by embracing renewable energy initiatives. By embracing green hydrogen and renewable energy, Oman intends to position itself as a regional leader and contribute significantly to global efforts in combating climate change.