Oman is strategically positioned to become a market leader in green hydrogen production in the Middle East, leveraging its abundant solar resources, favorable climate, and strong policy framework under Oman Vision 2040. With a national target of producing 1.38 million tons of green hydrogen by 2030 and allocating 50,000 square kilometers of land for this initiative, Oman aims to diversify its economy and reduce reliance on fossil fuel exports. This study identifies key cost drivers in green hydrogen production-electricity, electrolyzer costs, engineering, and balance of plant-with electricity alone accounting for 75% of operational costs. To address this, the use of solid oxide electrolyzers is proposed, as they can efficiently utilize Oman’s high ambient temperatures to enhance electrolyzer performance.

The regions of Thumrait, Marmul, and Duqm emerge as the most suitable locations for green hydrogen plants due to their high solar radiation and moderate ambient temperatures, which contribute to improved photovoltaic (PV) efficiency and higher power output. Based on stakeholder interviews and site assessments, the study recommends the implementation of comprehensive policies by Hydrom, including tax incentives, subsidies, and duty-free imports to stimulate investment. It also advocates for the parallel development of associated renewable sectors such as solar and wind to lower electricity costs and emissions.

Furthermore, the research underscores the importance of building strategic value chains by integrating green hydrogen into local industries like steel, mining, and transport, while also establishing export routes to major markets in Europe and Asia. The diversion of excess electricity from hydrogen production into the national grid is also proposed to support Oman’s long-term climate goals. Overall, this study highlights Oman’s potential to lead the region in green hydrogen development through strategic planning, technological investment, and policy support.