In 2021, Oman’s economy was ranked 70th in the world in gross domestic product (GDP). The country’s economy is dependent on the export of crude oil, liquified natural gas, refined petroleum, iron, and nitrogenous fertilizers.
In 2016, Oman signed the Paris Climate Agreement, committing to an unconditional 2% cut in greenhouse gas emissions, relative to business as usual.
In 2017, Oman announced a national renewable energy target to source 10% of the nation’s total electricity generation from renewable energy by 2025.
In 2020, power companies used natural gas (99.1 %) and renewable energy (0.1 %) to generate electricity in Oman. Solar and wind are the only types of renewable energy used to generate electricity in Oman.
Recent renewable energy projects in Oman include:
- 25,000 MW Wind + Solar Project – An international consortium led by the state-owned Omani oil company OQ is continuing work to develop a massive wind and solar project in central Oman. The consortium includes American green hydrogen developer, InterContinental Energy and Kuwait investment company, Enertech.
- 3,000 MW Solar + 500 MW Wind Project – Indian renewable energy company, Acme Solar is continuing work on a solar plus wind project near the Port of Duqm, approximately 300 miles south of Muscat. The project is forecast to be commissioned in 2024.
- 975 MW Solar Project – The Port of Sohar, located 162 miles west-northwest of the nation’s capital, Muscat is continuing work to develop a green hydrogen generation hub powered by solar energy. The project is scheduled to be commissioned in 2024.
- 125 MW Solar Project – In June 2020, Indian solar company, Sterling and Wilson Solar commissioned the Amin Solar project, which is located in the southwestern region of the country.
- 100 MW Solar Project –In September 2022, Omani energy company OQ announced plans to build the Liwa Solar project at a site approximately 225 miles southwest of Muscat. The project is forecast to be commissioned by year-end 2023.
- 25 MW Solar Project – In January 2021, Sterling and Wilson Solar commissioned a solar project in the Port of Sohar, which is approximately 125 miles northwest of Muscat.
Export of oil, and natural gas have been the foundation of Oman’s economy. In 2020, Oman exported U.S. $13.3 Billion in crude oil, U.S. $4.4 Billion in liquified natural gas, and U.S. $2.39 Billion in refined petroleum.
On 24 February 2022, Russia invaded Ukraine, prompting in the United States, Canada, and the European Union to place embargos on Russian exports, including fossil fuels. As a result, the price for crude oil and liquified natural gas have both increased by over 50% from May 2021 to May 2022.
Why is the Oman developing massive renewable energy projects when the prices of oil and natural gas recently have sky-rocketed? Oman recognizes the global threat of climate change and is committed to reducing greenhouse gas emissions.
Oman intends to use renewable energy for domestic power generation and transform its oil and natural gas economy to the generation of green hydrogen and green ammonia.
Oman is transitioning to a green energy economy.
Website – “Our Energy Conundrum”
Jack Kerfoot is a scientist, energy expert, and author of the book FUELING AMERICA, An Insider’s Journey and articles for The Hill, one of the largest independent political news sites in the United States. He has been interviewed on over 100 radio and television stations from New York City to Los Angeles on numerous energy related topics.
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 The World Fact Book
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