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11 December 2024
Publication series – 49 of 86 Insights
Oman and Belgium Sign Landmark MoU on Green Hydrogen Cooperation
- Briefing
On December 5, 2024, His Majesty Sultan Haitham bin Tariq of Oman visited the Port House in Antwerp, Belgium, where officials signed a landmark Memorandum of Understanding (MoU). This agreement between the Belgian Hydrogen Council and Hydrom Oman aims to strengthen collaboration in the green hydrogen sector. The partnership intends to drive joint research, industrial cooperation, and the development of a regulatory framework to support hydrogen import, distribution, and infrastructure. Hydrom Oman is an entity orchestrating Oman’s national interest in green hydrogen.
Key Projects and Developments
The MoU builds on previous agreements, including the Hyport Duqm Project, which focuses on producing green hydrogen and ammonia using wind and solar energy. DEME (offshore energy and dredging contractor, Belgium), OQ (energy company, Oman), and BP (UK) are spearheading the project, with plans to achieve an initial capacity of 1.3 GW and expand to 2.7 GW in the second phase.
The downstream operations will be fully integrated with the infrastructure at the Port of Duqm, enabling the export of green hydrogen to European and Asian markets.
The project will export green hydrogen through the Port of Duqm, positioning Oman as a strategic hub for hydrogen distribution to European and Asian markets and solidifying its role in the global hydrogen economy.
Strategic Importance
By using Belgium’s strategic location and developed hydrogen infrastructure, the country aims to become a gateway for green hydrogen into the European Union (EU). Oman, with its abundant renewable energy resources, is set to play a pivotal role in the global green hydrogen supply chain. This MoU marks an important step in both countries' efforts to develop sustainable and clean energy solutions by building the necessary infrastructure and advancing hydrogen production and distribution.
Key Statements
Tom Hautekiet, Chairman of the Belgian Hydrogen Council, expressed confidence in the agreement’s potential to drive innovation, investment, and growth in the hydrogen economy. He highlighted how Oman’s renewable energy capacity and Belgium’s hydrogen infrastructure complement each other, creating a strong foundation for this collaboration.
Salim Al Aufi, Oman’s Minister of Energy and Minerals and Chairman of Hydrom Oman, described the MoU as a milestone in Oman-Belgium energy cooperation. He stressed that creating a seamless hydrogen supply chain between Oman and Europe would help advance global clean energy transitions.
Future Prospects
The MoU strengthens Oman’s position as a hydrogen production hub. Oman is also exploring partnerships with other European countries, such as Germany’s VNG, to evaluate opportunities for developing a green hydrogen value chain between the two countries.
Global Hydrogen Trade
Oman continues to collaborate with other European partners, including the Port of Amsterdam and Zenith Energy Terminals, to explore the development of a liquid hydrogen supply chain. This initiative would deliver Omani green hydrogen to Amsterdam, ensuring a steady flow of clean energy to European markets.
Oman’s Hydrogen Vision
Oman plans to produce 1 million tonnes of green hydrogen annually by 2030, reinforcing its ambition to become a global leader in this sector. The Sultanate also aims to attract $40 billion in green hydrogen investments by 2030, with potential for expansion to $140 billion by 2050. Oman’s low-cost land and abundant renewable energy resources give it a competitive advantage in producing green hydrogen, particularly for export as green ammonia.
Strengthening Bilateral Trade
This MoU builds on Oman and Belgium’s growing economic relationship. In 2024, Oman’s exports to Belgium totalled RO 10 million, primarily consisting of polypropylene, iron, and copper. Belgium’s exports to Oman reached RO 138 million, including industrial goods, food products, and bunker oil.
Conclusion and Future Outlook
This MoU represents a major step in Oman and Belgium’s green energy collaboration, advancing both nations' ambitions in the global hydrogen economy. For Oman, the agreement paves the way for expanding its hydrogen production and export capacity, reinforcing its status as a key player in green hydrogen. Belgium, with its strategic position and infrastructure, will act as a vital entry point for green hydrogen into the EU market.
As this partnership evolves, it will likely spur technological advancements, attract foreign investment, and further support global energy transitions. Oman’s ongoing cooperation with other European countries will continue to strengthen its role as a key supplier of clean energy, creating new opportunities for green hydrogen trade across Europe and beyond.
The investments linked to the MoU and the additional investments anticipated under Oman’s hydrogen vision present a range of business opportunities. These opportunities extend across the entire hydrogen supply chain, offering potential for innovation and growth. Companies involved in production, transportation, storage, and utilization of hydrogen stand to benefit significantly.
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