Oman’s economy remains heavily dependent on fossil fuels; however, the country is emerging as a key player in renewables. To finance economic diversification, it is expanding hydrocarbons production while adopting advanced technologies to decarbonise the sector and meet its 2050 net-zero pledge. Sustainability strategies further aim to cut emissions through renewable energy integration, gas flaring reductions and efficiency upgrades. “The drive toward industrial decarbonisation in Oman highlights the balance between leveraging existing oil and gas expertise and transitioning to greener alternatives,” Siddharth Malik, CEO of Vulcan Green Energy, told OBG. “This dual focus positions Oman as both a traditional energy powerhouse and an emerging leader in sustainable industrial practices.”
Experience & Innovation
Oman’s climate presents significant opportunities for solar and wind energy production, which the sultanate is harnessing to decarbonise industrial practices and develop new value chains. However, the country’s challenging topography has historically required enhanced oil recovery (EOR) techniques, such as thermal, chemical and miscible flood methods, to extract more oil from mature fields. More recently, solar power has been harnessed to create a steam-flooding EOR technique, resulting in significant increases in production. One example is at the Amal Oil Field in south-east Oman, where the technique had boosted oil production by 16,000 barrels per day.
The bulk of Oman’s oil and gas production takes place onshore. Nevertheless, the sultanate is contributing to advances in sustainable offshore practices by combining advanced ocean wave energy converters and solar panels to provide reliable power sources for offshore sites, facilitating reductions in fossil fuel usage and carbon emissions. The system also provides a blueprint for future innovation, and some scientists believe more elements of marine environments can be utilised as sustainable energy sources. Artificial intelligence implementation is also planned to optimise results. Such techniques break new ground in industrial practices while creating jobs and boosting local industries.
Pooling Resources
Government-owned energy players such as OQ and Petroleum Development Oman (PDO) are investing heavily in renewable energy and sustainable practices to help decarbonise their own activities and the broader industry. In 2023 the Ministry of Energy and Minerals signed an agreement with PDO, Oman Shell, OQ and Occidental of Oman to establish a blue hydrogen and carbon capture, utilisation and storage (CCUS) knowledge-sharing platform. This initiative will foster collaboration in developing CCUS and blue hydrogen production, technologies, methods and value chains while contributing to the creation of a regulatory framework to attract investment. PDO is Oman’s largest in-country hydrocarbons producer, and its direct air capture and carbon mineralisation technologies are being harnessed to enable CCUS practices. It launched a decarbonisation strategy in 2019 with the aim of seeing renewable energy account for half of its power capacity by 2030. It has also entered into a partnership with Shell Development Oman to implement blue hydrogen production and usage, as well as CCUS techniques at the country’s Block 10 hydrocarbons reserve.
Breaking Ground
A notable development in the CCUS space saw Omani start-up 44.01 secure $37m in series A funding in July 2024 for further development of its pioneering carbon mineralisation technology, which injects captured carbon emissions into olivine, a common rock-forming mineral abundantly present deep in Oman’s geological strata. By leveraging this process, 44.01 can shorten the mineralisation timeline – which can take multiple decades – to 10 months, permanently sealing the emissions underground. According to German green venture capital fund Planet A Ventures, a 44.01 investor, the adoption of the start-up’s technology has removed 88-91% of emissions across its supply chain, demonstrating the potential of such innovations when applied across broader industrial operations.
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