Without alternative energy sources, future growth will become impossible. In light of this, OQ looks to lead the way in creating a robust alternative energy sector for Oman, with hydrogen being a frontrunner.
Alternative energy is at the cornerstone of sustainable growth. In the 21st century, renewable energy is starting to be a more feasible option, given the arrival of less expensive ways to capture it. Energy transition is defined as the need to reduce CO2 emissions to limit climate change and prevent its dire consequences. The majority of countries around the world are committing to achieving net-zero emissions by 2050, guaranteeing clean and stable energy supplies that are also cost effective and economically productive.
According to a report from the World Economic Forum in 2021, “getting to net zero will require widespread use of technologies still in development today. In 2050, almost half of CO2 emission reductions will need to come from technologies that are currently prototypes or being demonstrated.” Therefore, it is imperative that these strategies are accompanied by R&D. Oman plans to expand its renewable sector accordingly, deriving at least 30% from clean energy by 2030. As Salim Al Aufi, Undersecretary of the Ministry of Oil and Gas, stated, “sustainability is at the forefront, as Oman embarks on the deployment of renewable energy projects, and the pipeline is full of initiatives in this field that will yield benefits for current and future generations.” The Sultanate is committed to a sustainable energy model by increasing its portfolio of projects along PPPs. OQ is a pioneering company in the energy sector and has operations across 17 countries, covering an entire chain of supply, from exploration to distribution of products. It has worked on a specialized project since 2020 called alternative energy, which was set as the new avenue for green development not only locally but on a global scale. Their strategy was built upon three main principles: green molecules, energy assets, and energy efficiency as a way of optimization. Alternative energy was set as the forefront for 2020-2024 alongside the retail and gas business.
In working toward sustainability, Oman has set out pillars such as enhancing economic performance and R&D by increasing market presence and modernization. OQ has developed a business line that firstly includes production of green hydrogen, green ammonia, and green water, as well as green organic chemicals. Then, it will invest in renewable assets by being a principal provider of greener utilities and services (wind/solar power, waste to energy, and water treatment) to industrial and commercial districts. Finally, it will optimize power sourcing via different distributors and a portfolio of gas/electricity market’s contracts. The OQ 2020 Sustainability Report mentions that by 2030, the company aims to increase renewable energy generation up to 40% of the total power consumed through solar and wind development.
“Oman is in contact with different countries in the world and occupies a prominent place in the global arena due to its climate, strategic geographical location, and expertise in leading the shift toward renewable energy green hydrogen,” said Undersecretary Al Aufi. Consequently, an agreement with Petroleum Development Oman’s (PDO) Training and Development Center has been made in order to set up a National Hydrogen Alliance (NHA), which counts on 13 bodies from public and private sectors including operators of oil and gas, educational and research institutions, and port authorities.
Oman is today the hub for a wide range of projects such as hybrid renewables power plants, hydrogen alliances to develop clean fuel industry, and consumption programs that will demonstrate the country’s potential and dedication to improving the status quo of the industry sector.