Oman to set up new hydrogen company
May 07, 2022
A new national energy company dedicated to the pursuit of green hydrogen projects in the Sultanate of Oman is on the anvil, the Observer has learnt.
The new entity, Hydrogen Development Oman (HDO), is proposed to be a wholly-owned subsidiary of Energy Development Oman (EDO), the state-owned holding company set up by Royal Decree in December 2020 to represent the government’s stake in Petroleum Development Oman (PDO), as well as champion the country’s energy transition.
A ‘technical committee’ headed by Dr Mohammed bin Hamed al Rumhy, Minister of Energy and Minerals, is currently deliberating on the broad framework and remit of the new entity. A number of stakeholder government bodies and energy companies are part of this effort as well, notably EDO, OQ, Oman Investment Authority, Ministry of Commerce, Industry & Investment Promotion, and the Authority for Public Services Regulation (APSR).
According to experts, the establishment of a national hydrogen-centric company stems from the recent directives of His Majesty Sultan Haitham bin Tarik calling for effective institutional and regulatory foundations to be laid to support the growth of a future green hydrogen economy in the Sultanate of Oman. His Majesty the Sultan also stressed the need for a dedicated department to be set up within the Ministry of Energy and Minerals to oversee all regulatory aspects of this future industry.
Accordingly, with the Ministry as the regulator and policymaker for the green hydrogen sector, the proposed new entity Hydrogen Development Oman (HDO) will emerge as the national company for hydrogen projects. HDO will partner with local and international investors in the implementation of green hydrogen projects. Its equity in any project will also include the vast tracts of land that will be required for the upstream green electricity generation component of the project, it is learnt.