OQ, the integrated energy conglomerate of the Sultanate of Oman, has embarked on an ambitious journey towards renewable energy with a grand vision of developing over 5 gigawatts (GW) of renewable energy capacity by the year 2030. This strategic initiative, unveiled in OQ’s 2023 Annual Report, marks a significant step towards Oman’s sustainable development goals and the global transition to cleaner energy sources.
The driving force behind this renewable energy endeavor is OQ Alternative Energy (OQAE), a key division within the OQ Group. As part of its mandate as a ‘Renewable Energy National Champion’, OQAE is committed to spearheading the transition towards a more sustainable energy future for Oman. This initiative holds paramount importance as it not only aims to diversify Oman’s energy portfolio but also plays a pivotal role in decarbonizing the nation’s oil and gas sector and industrial clusters.
The implementation of this ambitious plan will unfold in multiple phases, with the first phase targeting around 400 MW of renewable energy capacity. This phase is anticipated to reach a critical milestone with a Final Investment Decision (FID) expected before the conclusion of the current year. Such progress underscores OQ’s steadfast commitment to accelerating the deployment of renewable energy solutions in Oman.
Moreover, OQAE has made notable strides in the realm of green hydrogen, signing Project Development Agreements (PDAs) with Hydrom for legacy green ammonia export projects such as Hyport Duqm, Green Energy Oman (GEO), and Salalah2. These agreements, coupled with secured concession blocks, signify concrete steps towards realizing Oman’s potential as a hub for green hydrogen production and export.
Despite the promising outlook, OQ acknowledges the inherent challenges in the green hydrogen sector, characterized by regulatory uncertainties, technological complexities, and evolving market dynamics. To mitigate risks and ensure the successful realization of these projects, OQAE has adopted a proactive approach, collaborating closely with key stakeholders to navigate the intricate landscape of green hydrogen development.
Furthermore, OQAE’s initiatives extend beyond green hydrogen, encompassing various low-carbon vectors such as biogenic fuels. Noteworthy endeavors include the exploration of e-sustainable Aviation Fuel (SAF) and e-methanol, underscoring OQ’s commitment to exploring diverse pathways towards sustainable energy solutions.
In essence, OQ’s ambitious renewable energy roadmap reflects its unwavering dedication to fostering a greener, more sustainable future for Oman while simultaneously positioning the nation as a prominent player in the global energy transition.
