Oman’s $140 Billion Green Energy Gamble: A Hydrogen Dream by 2050
Muscat, Monday, 17 November 2025.
Oman plans a massive $140 billion investment to become a top green hydrogen exporter by 2050. With its sunny and windy geography, it might just pull off this eco-friendly transformation.
Oman’s Strategic Hydrogen Plan
When Oman announced its $140 billion green hydrogen strategy, it did more than just catch the world’s attention—it set a course to potentially reshape its economic landscape by 2050. With plans to harness the abundant sunshine and winds along its long coastlines, Oman aims to produce green hydrogen, which is significantly cleaner than grey hydrogen produced from fossil fuels [1][2].
The Scale of Ambition
Oman’s ambitious plan includes installing 180 GW of renewable energy capacity and 100 GW of electrolyser capacity by 2050. This staggering infrastructure development is necessary to meet the goal of producing up to 8.5 million tonnes per annum (mtpa) of green hydrogen [1]. The country is not just dreaming big; it’s laying down the groundwork with Royal Decree 10/2023, which allocates 50,000 square kilometres for renewable projects [1].
Economic Transformation and Employment
The green hydrogen strategy is expected to create around 70,000 jobs in the hydrogen sector alone. This is part of a broader plan where 55% of new jobs by 2050 are to be generated within the green economy sector [1]. It’s a bold move to transition from traditional fossil fuels, but with significant promise for economic diversification and sustainability.
International Partnerships and Investments
Oman has been proactive in securing international partnerships to bolster its hydrogen sector. In April 2025, it signed a joint agreement with the Netherlands to develop a liquefied hydrogen transport corridor, enhancing its export capabilities to Europe, a key future market [1]. Additionally, the involvement of international players like Meranti Green Steel and Mitsui reflects growing global confidence in Oman’s green hydrogen ambitions [3][4].
Challenges and Market Dynamics
Despite the optimism, challenges remain. The required growth rates in renewable energy to meet 2030 targets are daunting, needing a leap from the current 21% to 50% annually for the low target, and even higher for the high target [1]. Moreover, shifting global market preferences, such as Japan’s focus on blue over green hydrogen due to cost, add layers of complexity to Oman’s export strategy [1].
Conclusion
Oman’s journey towards becoming a leader in green hydrogen is a testament to its commitment to a sustainable future. While challenges loom, the strategic investments and international collaborations are optimistic indicators of what the future might hold for Oman in the global green energy market [1][2].