Ibrahim Abdulrahim Al Zakwani 

AVP-Head of Sustainable Investments & ESG

Sohar International

The Gulf stands at a strategic inflection point; abundant capital, deep energy expertise, and ambitious national visions combine with mounting climate risks and a global reallocation of capital toward sustainability. For financial institutions in the region, the immediate challenge is not whether to act but how to redirect capital, so it builds resilience and long‑term value rather than serving short‑term yield cycles.

Drawing on practical experience from banking, fintech investment, and structuring regional deals, I address four core questions that should guide how the Gulf scales climate‑aligned investment: how to integrate climate risk and ESG into financing decisions, which financing structures make projects bankable, what regulatory reforms will accelerate market confidence, and how digital finance unlocks new pathways for investment.

Integrating climate risk and ESG into financing must move from optional reporting to core commercial logic. At the beginning of the loan deal, we may apply a staged, binding approach: standardized ESG and climate scorecards or evaluation matrixes that evaluate emission intensity, transition readiness, physical‑risk exposure and social impact; those scores feed directly into credit underwriting and RAROC models; and financing terms include explicit, enforceable sustainability covenants. This means the ESG assessment is not a checkbox but a variable that adjusts pricing, tenor, collateral requirements and capital allocation. Practically, higher physical‑risk exposure translates into scenario stress tests and a built‑in climate premium; weaker governance scores trigger additional monitoring and conditional disbursements. Post‑deal, continuous monitoring through quarterly climate dashboards and independent verification ensures outcomes align with commitments. Embedding these practical scorecards to pricing to covenant to monitoring, creates a feedback loop where underperformance is met with agreed contractual adjustments and success is rewarded through better interest rate pricing or access to follow‑on capital. The result is capital that prizes resilience and predictable returns over high‑risk yield.

Making green projects bankable in the Gulf requires combining de‑risking tools with project design that prioritizes predictability and scalability. The most effective stack is layered or blended finance: concessional first‑loss capital from development partners or government or sovereign funds absorbs early performance risk and attracts senior commercial debt at marketable rates; mezzanine funds and strategic equity bridge the remaining return expectations. Sovereign and multilateral partial credit guarantees, political risk insurance and climate‑risk insurance provide further protection against related shocks. Revenue support mechanisms including offtake floor prices for renewables and secured PPP models for adaptation would certainly create stable cash flows that banks can underwrite. Equally important is modularization of projects, breaking large projects into smaller mockups or standardized tranches that promote repeatability will result on reduced execution risk, and would broaden the investor base, and enable secondary trading, which in turn improves liquidity and market confidence. Technical rigor and robust feasibility studies, demand aggregation and procurement and construction oversight would also complement financial structuring and converts theoretical bankability into real.

Regulatory reforms and policy incentives are the accelerant that converts pilot transactions into a self‑sustaining market. A clear, Gulf green taxonomy aligned to international best practice is essential; it removes ambiguity about what constitutes a green or transition activity and reduces green washing risk. Mandatory climate risk financial disclosure for regulated financial institutions that are tailored to sector materiality, creates a baseline of transparency necessary for investors to compare exposures across jurisdictions. Targeted capital incentives, such as reduced risk weights for verified green loans or assets or central banks green lending facilities will lower the cost of capital for sustainable projects and create immediate commercial appeal. Also, governments can catalyse demand by integrating ESG requirements into public procurement and infrastructure planning, thereby providing a pipeline of investable projects. Finally, mandatory climate data standards reduce friction: using consistent data formats will shorten due‑diligence cycles and will results with a proper carbon credits or stock pricing which in return will raise investor confidence.  Together, these reforms shift the market from ad hoc deals to a predictable, investable asset class.

Technology is another powerful enabler. Digital finance and fintech tools are opening new pathways for climate-aligned investment. One example is tokenization, which allows us to turn a large project like a solar park or a green logistics hub into digital units that investors can buy and trade. This lowers the entry barrier and brings in a wider range of participants, including retail investors and smaller institutions. In addition, Real-time climate data platforms help us track environmental performance of these assets and manage risks more effectively. They also support new products like parametric insurance, which pays out automatically when certain climate conditions are met. Moreover, smart contracts can automate payments based on project milestones, ensuring that funds are released only when real progress is made. By embedding green finance into everyday systems like payroll, mobile banking, or supply chains, we can reach small businesses and households that are often left out of traditional finance. These tools make climate investment more inclusive, transparent, and scalable.

The pathway to a resilient, green Gulf is not singular; it requires simultaneous progress across institutional practice, project structuring, regulation and technology. Financial institutions must internalize climate risk and bind it to commercial outcomes, while project developers and governments must design deals that deliver predictable cash flows and scalable modules. Regulators must create transparent, clear frameworks that build market confidence. Likewise, fintechs must provide the plumbing that provides easier access and compresses costs. When these elements move in a comprehensive scorecard that shape pricing, blended stacks that protect commercial lenders, clear taxonomies that signal credibility, and digital tools that broaden participation; capital will flow at the scale and speed needed to secure long‑term resilience and sustainable economic growth for the region.

It is also important to remember that green and sustainable projects go far beyond renewable energy. They include social infrastructure like schools and hospitals built to withstand climate stress, sustainable transport systems that reduce emissions and improve mobility, agricultural and fisheries programs that protect food security, and green buildings that cut energy use and improve quality of life. Each of these sectors offers real opportunities for investment and real impact for communities.

The Gulf region has the resources, the expertise, and the ambition to lead in climate finance. But leadership means more than deploying capital, it means designing solutions that are resilient, inclusive, and replicable. At Sohar International Bank, we are committed to building those solutions, and through FinTech Investments, we are exploring how digital innovation can accelerate the transition. Acknowledging that execution takes collaboration, I want to thank the conveners of this dialogue for creating a forum where policy makers, financiers and technologists can convert ideas into investable pipelines and measurable outcomes.

LIONEL RABIN

Founder & Managing Director – HALTIQA Bridging Energies company

Green Hydrogen Expert & Low-carbon investment adviser

Sohar Port and Freezone, Oman’s most advanced industrial hub and one of the Gulf’s fastest-growing ports, is moving decisively to align its expansion with the national net-zero agenda. In a wide-ranging conversation between Engineer Lionel Rabin and Dr Abdullah Al Abri- Vice President for Sustainability at Sohar Port and Free Zone, for the Energy Talks series, the two energy transition specialists explored the port’s integrated roadmap toward carbon neutrality by 2050, its emerging role in regional hydrogen and clean-tech manufacturing, and the strategic advantage Sohar holds as Oman deepens its transition to a low-carbon economy.

In response to Lionel Rabin’s questions about how Sohar’s strategy aligns with national climate commitments, Dr. Al Abri, who brings experience from the International Energy Agency in Paris, and earlier roles at Petroleum Development Oman and Woodside Energy in Australia, framed decarbonisation not merely as an environmental necessity but as a competitive strength that will shape the next chapter of industrial development in the Sultanate.

Oman’s transition, he said, is grounded in the country’s Vision 2040, built on three pillars: a prosperous population, a competitive economy, and a sustainable environment. The government’s adoption of a 2050 net-zero target has catalysed a progression from broad environmental aspirations to detailed sectoral roadmaps.

“The Vision serves as our compass,” Dr. Al Abri explained. “The net-zero goal defines our destination.”

He highlighted the establishment of the Oman Net Zero Center earlier this year as a foundational step. The Center is developing pathways for all major sectors—industry, mobility, power, and oil and gas—to reach carbon neutrality, underpinned by clear governance structures.

These national frameworks guide Sohar’s own approach, he added. As Oman’s largest industrial cluster, hosting metals, petrochemicals, logistics, and food sectors, Sohar has created a detailed decarbonisation roadmap centred on energy efficiency, renewable integration, electrification, biofuels, hydrogen, and carbon capture, utilisation and storage (CCUS). “We view sustainability and decarbonisation as drivers of competitiveness. That’s our focus,” he said.

Sohar’s Strategic Positioning

Eng. Lionel Rabin noted Sohar’s significant scale and asked Dr Al Abri to contextualize the port’s economic contribution. Sohar’s contribution to Oman’s economy is substantial. More than US$30 billion in investment has flowed into the port and free zone over the past two decades. Today, Sohar handles over 70% of Oman’s trade—meaning seven out of every ten products entering the country pass through its terminals.

Sohar’s position just outside the Strait of Hormuz gives it a unique geostrategic advantage: connected to global east-west shipping routes, but without the chokepoint constraints of the narrow strait. Its partnership with the Port of Rotterdam ensures high standards in governance, transparency, and operational excellence.

“We’re not selling promises—we’re selling progress,” Dr. Al Abri emphasised. “We’ve built strong integrated supply chains, and we’re becoming an anchor for Oman’s energy transition.”

Throughout the dialogue, the two experts discussed a wide portfolio of initiatives already underway. Sohar’s decarbonisation is cumulative and systemic, ranging from efficiency upgrades to groundbreaking pilot technologies.

Energy Efficiency

Drawing on his experience in the industrial gases industry implementing energy efficiency programs, Eng. Lionel Rabin probed the practical measures Sohar is deploying. With one of the Gulf’s fastest growth rates—operating near full capacity after only 20 years—efficiency remains a major opportunity. Sohar estimates a 5% reduction in energy use by 2030 through initiatives such as: Night-on-demand lighting across the port area; Optimisation of cooling and wastewater systems; Resource-efficiency collaborations under the Sohar Alliance; and Reusing existing infrastructure instead of creating new systems

These measures, Dr. Al Abri noted, not only reduce emissions but improve the competitiveness of industries operating at the port.

Hydropower and Waste Heat

When Eng. Lionel Rabin asked about renewable energy solutions tailored to Sohar’s unique industrial context and how the port and free zone are also exploring unconventional renewable solutions, Dr Al Abri revealed. A cooling-water canal running through the port provides a constant high-volume flow, enabling the potential installation of turbines for steady, non-intermittent hydropower—a rarity in the Gulf’s geographical context.

The port has completed a detailed mapping of exothermic and endothermic industrial processes, laying the groundwork for a centralised waste heat recovery system. Excess industrial heat could be repurposed to support nearby facilities, including those operated by Vale and Jindal Shadeed. “It’s a major opportunity,” he said, and one that blends efficiency, innovation, and circular-economy principles.

Biofuels, Shore Power, and LNG Bunkering

Sohar’s maritime decarbonisation efforts are equally ambitious. The port is: Using biofuels to reduce emissions from tugboats by 20%; Installing shore power systems allowing vessels to shut down engines at berth; and Hosting the Marsa LNG project, the Gulf’s first LNG bunkering facility. These initiatives position Sohar as a regional leader in clean shipping.

Looking ahead, Dr. Al Abri unveiled plans for a major clean-technology manufacturing cluster. Key developments include: a US$1.6 billion polysilicon plant nearing commissioning; A solar PV manufacturing facility under construction; and Efforts to attract investments in ingots, wafers, wind components, and electrolyzers.

“Our strategic focus rests on three pillars: bold moves, decarbonisation that boosts competitiveness, and industrial growth through clean-tech manufacturing,” he said. This cluster will help Oman strengthen its presence across the renewable-energy value chain.

Positioning Among Regional Peers

When Eng. Lionel Rabin asked how Sohar differentiates itself from other GCC ports, Dr. Al Abri argued that Sohar’s integrated industrial ecosystem sets it apart. Unlike transshipment-focused ports, Sohar’s strength lies in interlinked supply chains where inputs and outputs flow between tenants.

Upcoming infrastructure—such as the rail link connecting Sohar to the rest of Oman and the GCC by 2028—will add new competitive layers. “The more supply chains develop, the better for everyone,” he said. “That’s the lesson from the oil and gas sector.”

Sohar is also emerging as a prime candidate to anchor a regional green shipping corridor linking Oman, the UAE, Qatar, and Kuwait, thanks to its existing LNG bunkering, shore power, biofuel use, and renewable integration.

Hydrogen: Blue, Green, and Natural

A key focus of the Eng. Lionel Rabin-Dr Abdullah Al Abri discussion centered on hydrogen—a topic where both experts share deep knowledge and past joint experience on the initial national green hydrogen strategy and implementation road map back in 2019. Hydrogen is central to Sohar’s vision. Oman is already the third-largest hydrogen producer in the Middle East, largely through grey hydrogen used in refining, petrochemicals, and steel manufacturing. Sohar plans to lead the transition toward cleaner forms.

A consortium comprising OQ and OQ Alternative Energy is developing a port-wide CCUS ecosystem. About 85% of the conceptual work is complete. Sohar expects a two-million-ton CO₂ capture facility by 2030, serving as the backbone for blue hydrogen production and industrial decarbonisation.

Eng. Lionel Rabin, who has been in discussion with the Ministry of Energy and Minerals of Oman on in-country natural hydrogen perspectives, engaged Dr Abdullah Al Abri on that hydrogen pathway. Dr. Al Abri expressed keen interest in white hydrogen, also known as natural hydrogen found in geological formations. Oman is believed to be among the world’s most promising regions for exploration. Sohar has already signed partnership agreements with companies holding exploration permits.

“If discoveries materialize, it could be transformative for Sohar and for Oman,” he said.

Sohar is positioning itself as a national hub for green hydrogen production. A first-phase investment case is being finalised to install 80–100 MW of grid-connected electrolyzers supplying key industries. The electric grid, already 11% renewable and expected to reach 30% by 2030, ensures stable non-intermittent hydrogen production without the need for costly storage.

Sohar has also partnered with a Swiss consortium to develop a green corridor between Oman and Switzerland, aligned with the 2023 bilateral framework agreement.

Hydrogen, he stressed, is part of a broader ecosystem that includes methanation, SAF production using biogenic CO₂, and renewable-energy-driven industry.

Partnerships

Eng. Lionel Rabin, drawing on his 20-year sustained experience with public-private partnerships in Oman, explored the collaborative frameworks driving Sohar’s transformation. Partnerships remain central to Sohar’s strategy. Beyond its foundational joint venture with the Port of Rotterdam, Sohar is part of the Sohar Net Zero Alliance and a member of the global Alliance for Industry Decarbonization. Its industrial and energy trade relationships span Europe, Asia, and the Far East.

“We’re seeing strong interest from Japan, South Korea, and China,” he said, noting that these markets view Sohar as an early mover and “conversion-ready” industrial hub. Discussions are ongoing to align Sohar’s decarbonised outputs with future import demand.

As the conversation concluded, Eng. Lionel Rabin reflected on the significance of Sohar representing a compelling case study of how industrial decarbonisation can be both systematic and commercially driven, integrating efficiency, renewables, hydrogen, and CCUS—within a functioning industrial ecosystem.

As Oman prepares to host the Green Hydrogen Summit Oman from 30 November to 4 December, Dr. Al Abri delivered a clear message to global investors and technology partners:
Come to Oman — and visit Sohar.

“Sunshine in Oman is not just a slogan; it’s a cost advantage,” he said, citing IEA findings that Oman has some of the world’s best complementary wind and solar resources. With renewables making up 70% of total hydrogen production costs, Oman’s natural advantages translate directly into competitiveness.

“Sohar is a plug-and-play environment where progress is tangible. The switch is on. There are enormous opportunities for partnership.”

The benefits of Oman’s energy transition go far beyond climate goals. It is a national opportunity — to create jobs, attract investment, improve public health, and protect the environment while securing a stable and prosperous future for all Omanis.

Eng. Mohamed Amur Al-Shidhani

Chemical Engineer (Exploration & Development)

Stratum Reservoir

Dr. Maan Hayyan

Energy and Sustainability Research Center (ESRC)

A’Sharqiyah University

Over the past few decades, the effects of climate change have become impossible to ignore. Rising global temperatures, more frequent droughts, and extreme weather events are impacting economies, food supplies, and human health across the world. Scientists agree that these changes are largely caused by greenhouse gas emissions from burning fossil fuels like oil, coal, and natural gas — the same fuels that have powered global growth for more than a century. The world today is moving toward a cleaner and more sustainable future. Countries everywhere are setting ambitious goals to reduce carbon emissions and rely less on fossil fuels. For Oman, this global shift carries both a challenge and a unique opportunity. As a nation that has built its prosperity on oil and gas, Oman now stands at an important crossroads: how can it continue to grow its economy and create new jobs while also protecting the environment and meeting international climate goals?

This question formed the starting point of our study, “Oman’s Energy Transition Roadmap to Net Zero 2050.” The research explores how Oman can gradually reduce its greenhouse gas emissions to reach net zero by 2050 — a target that means balancing the amount of carbon released with the amount removed from the atmosphere. Rather than focusing only on technology or policy, the study looks at the bigger picture: how the transition can shape the country’s economic future, energy security, and social wellbeing.

Oman is blessed with abundant sunshine, strong coastal winds, and a young, ambitious population — all ingredients for a successful clean-energy transition. However, turning this potential into reality requires a clear roadmap, strong planning, and commitment from all sectors. The study therefore aims to answer key questions: What steps should Oman take? What resources and investments are needed? And how can the transition support the goals of Oman Vision 2040 — building a diversified, knowledge-based, and sustainable economy?

By understanding these issues, the research seeks to guide policymakers, investors, and the public toward a shared vision: an Oman that continues to prosper while leading the region in sustainability.

Oman’s path toward a net zero future is not only about cutting emissions — it’s about shaping a stronger, more resilient nation. The global shift toward clean energy is transforming economies everywhere, and for Oman, it offers a chance to diversify beyond oil and create new sources of growth and employment.

One of the most promising opportunities lies in renewable energy, especially solar and wind. With some of the highest solar radiation levels in the world, Oman has a natural advantage in generating clean electricity. The country’s open desert areas and long coastline also provide ideal conditions for wind farms. Investing in these resources can help Oman reduce its dependence on imported fuels, lower electricity costs, and build a more stable energy system for the future.

Another major opportunity is green hydrogen — a clean fuel made from water using renewable electricity. Global demand for hydrogen is expected to rise sharply in the coming decades as industries and transport systems look for alternatives to fossil fuels. Oman is already positioning itself as a potential regional hub for green hydrogen production and export. This could open up a new pillar of the economy, attract foreign investment, and create thousands of skilled jobs for young Omanis in engineering, manufacturing, and technology.

Beyond economics, the environmental and social benefits of the energy transition are equally important. Cleaner energy means cleaner air, reduced pollution, and better public health. It means a more sustainable water and food system, as renewable technologies can support efficient desalination and modern agriculture. For families, it means a healthier environment and new opportunities for education and innovation.

The transition also aligns closely with Oman Vision 2040, which aims to build a diversified, knowledge-based economy powered by innovation and sustainability. Shifting toward clean energy supports that vision by encouraging research, entrepreneurship, and new industries that can thrive in a low-carbon world. It also strengthens Oman’s international standing, showing that the country is ready to lead in the region’s environmental and energy future.

Finally, embracing clean energy helps ensure long-term energy security. Oil and gas reserves are finite, and their global demand may decline as the world moves toward decarbonization. By investing in renewables today, Oman can secure reliable and affordable energy for generations to come.

In short, the benefits of Oman’s energy transition go far beyond climate goals. It is a national opportunity — to create jobs, attract investment, improve public health, and protect the environment while securing a stable and prosperous future for all Omanis.

Our study, “Oman’s Energy Transition Roadmap to Net Zero 2050,” shows that Oman has the potential to achieve net zero emissions by mid-century — but doing so will require clear planning, early investments, and strong collaboration across sectors.

The findings highlight that Oman can meet most of its future energy needs through renewable energy sources such as solar and wind. By steadily expanding renewable capacity, improving energy efficiency, and introducing clean technologies in transportation and industry, Oman can significantly reduce its carbon footprint while continuing to grow its economy.

Another key finding is the central role of green hydrogen. With the right infrastructure and partnerships, Oman could become one of the world’s major producers and exporters of green hydrogen. This would not only generate new revenue streams but also position the country as a regional leader in clean energy innovation.

However, the transition will not happen automatically. It requires a strong policy framework, supportive regulations, and continued investment in research and skills development. Based on the study, several recommendations are proposed:

1. Invest early and consistently in renewable energy projects and hydrogen infrastructure to build momentum toward the 2050 target.
2. Encourage public–private partnerships, ensuring collaboration between government entities, companies, and academic institutions.
3. Promote education and capacity building, equipping young Omanis with the green technical and managerial skills needed for future green industries.
4. Enhance energy efficiency in buildings, transportation, and manufacturing sectors to reduce energy demand.
5. Strengthen environmental policies and monitoring systems to guide the transition and attract responsible investment.

Reaching net zero is not only an environmental goal — it is an economic and social transformation. With its natural advantages, strong leadership, and clear national vision, Oman has all the tools needed to succeed. The journey toward 2050 can create a cleaner environment, new industries, and lasting prosperity for future generations.

Strategically located at the crossroads of vital maritime routes, Oman is uniquely positioned to lead the global transition toward renewable energy solutions through the Sustainable Nopal Cactus Biofuel Initiative (SNCBI).

Harith Al Lamki

CEO – Green Energy Technology LLC Oman

Triton Hydrogen Corporation (THC), in collaboration with Green Energy Technology (GET), is pioneering an ambitious initiative to establish Oman as a global biofuel hub by leveraging advanced biomass-to-biofuel and waste-to-biofuel technologies, particularly utilizing Nopal cactus biomass. This project, strategically anchored in Duqm’s Special Economic Zone Authority (SEZAD), seeks to produce B20 biodiesel, bio-gasoline, B100 marine biodiesel, and B100 Sustainable Aviation Fuel (SAF), catering to the vast global demand from transportation and industrial sectors.

Why Nopal Cactus?

Nopal cactus, also known as prickly pear, is exceptionally suited to Oman’s arid climate due to its low water requirement, high biomass yield, and impressive resilience against harsh environmental conditions. This makes Nopal cactus cultivation not only economically viable but environmentally beneficial, significantly aiding carbon sequestration efforts. The scalability and sustainability of this crop promise a steady supply of feedstock essential for large-scale biofuel production.

Triton’s Advanced Biomass-to-Biofuel Technologies

At the core of SNCBI is Triton’s state-of-the-art biomass-to-biofuel conversion technology, which integrates Hydrothermal Liquefaction (HTL), FIRC-enhanced Catalytic Hydrogenation. This combination enables efficient conversion of biomass into premium biofuels, delivering exceptional performance with lower carbon emissions compared to traditional fossil fuels.

Hydrothermal Liquefaction (HTL): HTL employs high-temperature, high-pressure water to convert biomass into bio-oil, which serves as the precursor for further upgrading into fuels. This process efficiently handles wet biomass, making it especially suitable for Nopal cactus, given its high moisture content.

FIRC-enhanced Catalytic Hydrogenation: Catalytic Hydrogenation further refines bio-oil into higher-value biofuels such as bio-gasoline, biodiesel, and SAF. This process involves the use of catalysts under green hydrogen-rich conditions to improve fuel quality, reduce contaminants, and achieve standards compatible with existing engines and infrastructure.

The FIRC technology significantly enhances the efficiency of Catalytic Hydrogenation by concentrating reactants through electromagnetic fields, reducing reaction time, lowering energy consumption, and optimizing product yields. This innovative process positions Triton’s biofuel production as technologically advanced and economically attractive.

Strategic Location

Duqm’s Special Economic Zone Authority (SEZAD) presents an ideal industrial and logistical environment for SNCBI. Equipped with state-of-the-art port facilities, Duqm enables seamless global logistics, crucial for importing bio-oil crude feedstocks from diverse international sources including Asia-Pacific, Africa, India, South America, Southeast Asia, East Africa, and GCC countries. The tax-free status and robust infrastructure further enhance its attractiveness as a biofuel production and export hub.

Meeting Global Energy Demand

The SNCBI aims to significantly impact global energy markets by supplying essential biofuels tailored for key industries. With approximately 1.4 billion Internal Combustion Engine (ICE) vehicles in operation worldwide, Triton’s production of carbon-neutral B20 biodiesel and bio-gasoline (20% Nopal + 80% Oman oil) offers a direct solution for reducing automotive emissions without extensive infrastructural modifications.

Marine Biodiesel (B100): The maritime sector, under stringent international emissions regulations, urgently requires cleaner fuel solutions. Triton’s B100 marine biodiesel provides a robust, cleaner alternative to conventional bunker fuel, significantly lowering the shipping industry’s carbon footprint.

Sustainable Aviation Fuel (SAF): Aviation, one of the most challenging sectors to decarbonize, benefits immensely from Triton’s B100 SAF. By delivering fuels that meet stringent aviation standards, SNCBI plays a crucial role in aviation’s global decarbonization efforts, aligning with international sustainability objectives.

Integration with Oman’s Green Hydrogen Ambitions

Oman’s pursuit of becoming a leading green hydrogen producer complements SNCBI’s biofuel production processes. Green hydrogen, essential for the Catalytic Hydrogenation step, enhances process efficiency and significantly reduces carbon emissions. Thus, the integration with Oman’s broader renewable energy infrastructure amplifies the environmental and economic benefits of Triton’s technology.

Environmental and Economic Benefits

The implementation of SNCBI aligns closely with Oman Vision 2040, promoting economic diversification and sustainable development. This initiative is anticipated to generate substantial employment across various sectors such as agriculture, technology, logistics, and manufacturing. Additionally, extensive Nopal plantations support significant carbon sequestration and desertification, directly contributing to Oman’s climate commitments. From an economic perspective, SNCBI represents an attractive investment opportunity, promising significant returns given global market trends favouring sustainable fuels. Furthermore, it positions Oman as an influential player in international renewable energy markets.

Investment and Global Collaboration

The SNCBI initiative invites global stakeholders to invest and collaborate in developing a resilient and sustainable biofuel ecosystem. Strategic partnerships facilitated by Triton and GET will involve technology transfer, joint ventures, and international collaborations, reinforcing Oman’s position as a global renewable energy leader.

Conclusion

The Sustainable Nopal Cactus Biofuel Initiative, driven by Triton’s innovative biomass-to-biofuel technologies, positions Oman as a strategic global biofuel hub. Leveraging Duqm’s geographical advantages, advanced technological processes, and alignment with Oman’s green hydrogen ambitions, SNCBI exemplifies a powerful model for global renewable energy transformation. This initiative not only addresses crucial global energy demands but also significantly enhances environmental sustainability and economic resilience, marking a substantial leap toward a cleaner, more sustainable global energy future

By linking domestic renewable energy capacity with industrial-scale production and export corridors, Oman is building a framework to transform its hydrogen ambitions into a sustainable and globally relevant industry.

Dr John Calabrese

The United Nations-affiliated Intergovernmental Panel on Climate Change Sixth Assessment report “Mitigation of Climate Change” calls urgently for deep reductions of greenhouse gas emissions across all sectors. While electrification is central to decarbonization, certain hard-to-abate sectors – including aviation, shipping, steel, and cement – require alternative solutions. In these areas, green hydrogen offers a promising path for lowering carbon emissions and decoupling economic growth from fossil fuel dependence, though its adoption depends as much on geopolitics, economics, and infrastructure as on technology.

Oman has moved rapidly to position itself as a regional and global hub for green hydrogen, driven by economic diversification and climate goals under Vision 2040. While strategic ambition and active international engagement underscore its potential role in the future of clean energy, the country must navigate technological, economic, and resource-related challenges to fully realize these objectives.

Oman’s hydrogen ambitions – targeting 1.5 million tons annually by 2030 with over $50 billion in committed projects – place it close to Saudi Arabia’s Neom, which aims for 600,000 tons annually powered by 4 gigawatts of renewables, and rival the United Arab Emirate’s low carbon hydrogen capacity exceeding 1.4 million tons per year. Qatar, meanwhile, emphasizes blue hydrogen linked to natural gas and carbon capture. Unlike many Gulf peers reliant on blue hydrogen pathways, Oman stands out as the region’s most fully renewable-powered hydrogen economy, integrating production clusters at Duqm to anchor domestic demand and exports. This combination of relative scale and green structural orientation could give Oman a unique competitive position in the Gulf hydrogen landscape.

The Global Hydrogen Context: Promise vs. Market Realities

Hydrogen is not new to industrial use. For decades, gray hydrogen, derived from natural gas, has been used in refining and fertilizer production. What is new is the shift to green hydrogen, produced through electrolysis using renewable-powered electricity, making it virtually carbon free. Advocates hail hydrogen as indispensable for decarbonizing steel, cement, aviation, chemicals, and long-haul shipping.

However, even as governments adopt ambitious hydrogen roadmaps, practical progress remains uneven. Hydrogen Central has reported on a wave of canceled or postponed projects across Europe, North America, and Australasia. High costs, uncertain demand, and technical barriers have forced companies including ArcelorMittal, Iberdrola, Shell, BP, and Equinor to scale down their ambitions, while U.S. and Australian developers – including Air Products and Fortescue – have also pulled back from largescale projects. The mismatch between green hydrogen’s potential and its economic viability remains stark. For example, Luxembourg-based ArcelorMittal has scrapped plans to transition two plants in Germany to hydrogen-based green steel production, citing prohibitive costs. Yet, in the Gulf, flagship ventures, such as Neom in Saudi Arabia, are proceeding, buoyed by state support and long-term strategic bets.

This global slowdown contextualizes Oman’s ambitions. Unlike advanced economies struggling to retrofit existing infrastructure, Oman can build an energy transition architecture from the ground up, harnessing its abundant renewable resources and unencumbered industrial space. Nevertheless, Oman’s plans face the same structural cost hurdles that have undermined projects elsewhere. Its distinct advantages – geography, renewables, political stability, and strategic partnerships – must therefore be weighed carefully against these constraints.

Oman’s Renewable Energy Expansion as a Foundation

Green hydrogen is only as clean as the electricity that produces it. Thus, Oman’s hydrogen strategy depends first and foremost on scaling renewable capacity, a project that has accelerated in recent years.

Oman has committed to sourcing 30% of its electricity from renewables by 2030 and 60% by 2040. As of May, renewables comprised 11.5% of Oman’s energy mix. Large-scale solar plants have been pivotal, most recently the 500 megawatt Manah I solar facility, built by Shanghai Electric with France’s EDF and Korea Western Power, came online operating under a 20-year power purchase agreement with Nama Power. Other projects, such as Ibri 2, Dhofar 1, and upcoming Ibri 3 and Dhofar 2, are rapidly boosting capacity.

China has emerged as a central partner. LONGi Green Energy Technology Company has joined forces with Power Construction Corporation of China to providing high-efficiency solar modules for the North Oman Solar Project, powering production for Petroleum Development Oman, the country’s largest producer of oil and gas. JinkoSolar, a major Chinese rival to LONGi, has secured the contract to supply Oman’s first hydrogen-linked solar project, a 487.5 MW facility supporting green ammonia production.

Meanwhile, pioneering smaller-scale initiatives, such as Oman Data Park’s partnership with Solar Wadi to establish the country’s first green energy data center, showcase the capacity-building logic of leveraging renewables for both industry and services.

This ecosystem of renewable projects provides the physical basis for hydrogen electrolysis, without which Oman’s export ambitions would remain aspirational.

Oman’s Green Hydrogen Roadmap: Scaling Supply and Infrastructure

Oman has set a national target to produce 1 million tons of green hydrogen annually by 2030 and 8 million tons by 2050. Achieving such scale requires coordinated planning, institutional innovation, and foreign partnerships. In line with Sultan Haitham bin Tariq al-Said’s directive to fast-track hydrogen development, Oman established Hydrom, charged with overseeing concessions and coordinating upstream renewables with downstream hydrogen and ammonia projects. Hydrom’s portfolio now includes nine awarded projects in Al Wusta and Dhofar, together valued at more than $50 billion and designed to produce roughly 1.5 million tons of green hydrogen per year by 2030.

Oman is also prioritizing industrial clustering. Preliminary planning is underway for the development of a dedicated green hydrogen zone in the Duqm Special Economic Zone. Covering about 7 square miles, the zone aims to co-locate production plants, storage, export facilities, and service corridors, hosting downstream elements of at least five confirmed megaprojects. Duqm is emerging as a green industrial hub, with companies including France’s Engie and South Korea’s Posco contributing to the buildout.

Oman’s first green hydrogen and ammonia plant is already under construction, led by India’s ACME Group. Chinese partners, including Sungrow Hydrogen and Shuangliang Group, are supplying key electrolyzers and hydrogen production systems. Complementing these is an ambitious manufacturing partnership between Oman’s United Engineering Services and China’s Sungrow to build a local factory for electrolyzers and liquefaction systems.

These supply chain and infrastructure commitments address one of the major bottlenecks in global hydrogen rollouts, namely technology dependence. By localizing equipment production and inviting heavy industrial investors, Oman is seeking to move beyond pilot-scale hydrogen projects into creating genuine commercial anchors.

Industrial Anchors: Hydrogen and the Green Steel Value Chain

A key obstacle facing hydrogen economies worldwide is sustaining demand at scale. Oman’s ambition is not only to export hydrogen directly but to integrate it into industrial value chains that can anchor demand domestically while serving international markets.

One initiative is the Meranti Green Steel project, which aims to establish a 2.5 million ton per year green hot briquetted iron plant in Duqm. The project envisions an initial reliance on a gas and hydrogen mix before ramping up to mostly hydrogen by the end of the decade. The plant’s output is intended for Meranti’s green steel plants in Thailand and for European customers pursuing lower-carbon supply chains.

The importance for Oman lies both in demonstrating hydrogen’s role as a commercially viable fuel for heavy industry and in creating the conditions for Omani steel to be integrated into international markets undergoing a shift toward greener materials. Green hydrogen-enabled industries therefore serve as a bridge between Oman’s domestic energy infrastructure and global decarbonization markets, ensuring that these projects are not stranded assets but are aligned with long-term industrial and commercial demand.

Financing the Transition: Sovereign Investment and International Partnerships

Hydrogen megaprojects require unprecedented financing commitments. To support the country’s energy transition and emerging hydrogen sector, the $200 million Future Fund Oman was established as a joint initiative between the sovereign investment authority and Hong Kong’s Templewater. The fund is designed to catalyze investment in renewable energy, electrofuels, green data centers, and low-carbon mobility, strengthening both domestic capacity and Oman’s position in global low-carbon markets.

Beyond domestic capital, Oman actively seeks international partnerships. At the Oman-Korea Green Hydrogen Investment Forum in August, the Ministry of Energy invited Korean companies to join Omani projects, emphasizing shared ambition and Korean technological capacities. Japan, South Korea, China, and India – each possessing ambitious hydrogen import agendas – represent important target markets, while Oman also courts European partnerships. Its balanced diplomacy allows it to navigate great power rivalries, securing investment from China, India, Korea, and Europe simultaneously.

Strategic Geographies: Europe vs. Asia

Oman’s location on the Arabian Sea provides a strategic advantage for hydrogen exports, offering shorter transit times and potentially lower shipping costs to major Asian markets, including India, Japan, South Korea, and China. At the same time, Europe remains a politically and commercially significant target given the European Union’s increasing reliance on hydrogen for decarbonizing steel, chemicals, and heavy transportation.

Duqm, in southeastern Oman, is positioned as the cornerstone of a dual-market export strategy. It anchors an envisioned Oman-Europe liquefied hydrogen corridor while serving as the operational hub for shipments to Asia. The site’s development has been accelerated by Chinese participation. Firms such as Sungrow Hydrogen and Shuangliang Hydrogen have supplied critical equipment and contributed to port infrastructure, industrial zones, and ancillary facilities that integrate renewable generation, electrolysis, and downstream logistics. These partnerships enhance the scalability and technological readiness of Duqm, aimed at transforming it into a comprehensive hydrogen hub rather than a simple export terminal.

Europe offers credibility and a politically backed market, but cost competitiveness remains a challenge; delivered liquefied hydrogen could exceed current European production costs. Asia, in contrast, provides both proximity and scale, with the combined demand of Japan, South Korea, China, and India forming a large and expanding market for green hydrogen and ammonia. By leveraging Duqm as the operational center for both corridors, Oman can validate its hydrogen production in the European market while capturing volume and diversification opportunities in Asia.

This dual-market approach also aligns with Oman’s broader diplomatic strategy of neutrality and multidirectional engagement, reducing dependency on a single region while maximizing strategic flexibility. By integrating domestic renewable energy assets with industrial-scale hydrogen production and export logistics at Duqm, Oman is creating a sustainable, commercially viable pathway for the country’s hydrogen ambitions. Chinese firms’ involvement has been pivotal in enabling this integrated model, providing technology, infrastructure, and expertise that strengthen Oman’s competitive position in both European and Asian hydrogen markets.

Structural Constraints: Technology, Water, and Economics

Oman’s hydrogen strategy is ambitious but faces critical headwinds. First is technology dependence. Oman does not yet manufacture electrolyzers at scale, relying heavily on Chinese partnerships. While joint ventures including United Energy Services-Sungrow aim to fill this gap, dependency raises strategic risks.

Second is water availability (and costs associated with it). Electrolyzers require vast volumes of water – fresh, seawater, or treated wastewater. In an arid country like Oman with scarce water resources, this creates potential trade-offs. Advanced seawater desalination and water recycling will be required, adding to expenses.

Third, and most fundamental, is price competitiveness. Omani planners aim for production at $2 per kilogram by 2030, yet current benchmarks suggest prices at nearly double that. Without international subsidies, regulatory frameworks, or carbon pricing mechanisms that privilege low-carbon fuels, Oman may struggle to sell hydrogen profitably in distant markets.

The Diplomatic and Industrial Dimension: Asia, China, and Balanced Geopolitics

China has emerged as a central player in Oman’s hydrogen sector. Chinese firms have won substantial contracts to supply hydrogen production equipment, especially for large green ammonia and hydrogen projects in Oman. China is embedding itself across Oman’s hydrogen value chain by supplying panels (JinkoSolar), electrolyzers (Sungrow, Shuangliang), and full hydrogen systems (Xinsichuang Hydrogen) and engaging in research and development partnerships, including collaboration on liquefaction technologies with Sultan Qaboos University. Joint interests extend to hydrogen fuel-cell trucking and supply chains.

This partnership is also geopolitical. As U.S.-China tensions constrict Beijing’s access to Western cleantech markets, the Middle East provides fertile terrain for Chinese industries, and Oman is a crucial partner.

Oman’s neutral diplomatic posture – cultivating ties with Europe, Asia, and competing Gulf neighbors – thus becomes an asset, insulating it from overreliance on one bloc. This balance is central to maintaining export flexibility and long-term sovereignty in a competitive global hydrogen market.

Challenges Ahead

Oman’s dual-market hydrogen strategy – anchored at the Duqm hub and supported by strategic partnerships, including major Chinese technology and infrastructure players – positions the country to meet both European and Asian demand while advancing domestic economic diversification.

Yet challenges remain. Cost competitiveness, water scarcity, and global market volatility require careful navigation. Looking ahead, initiatives like the 2025 Green Hydrogen Summit Oman – which will bring together over 3,000 participants to focus on regulatory, financing, and infrastructure priorities – demonstrate Oman’s active role in implementing its hydrogen strategy.

By linking domestic renewable energy capacity with industrial-scale production and export corridors, Oman is building a tangible, forward-looking framework to transform its hydrogen ambitions into a sustainable and globally relevant industry, reinforcing its Vision 2040 and net-zero objectives.

[Reprinted with permission from the Arab Gulf States Institute (AGSI), a Washington-based independent, nonprofit institution dedicated to highlighting the importance of the relationship between the 
United States and the Gulf region through free and open exchange of multiple points 
of view on issues that concern the Gulf.]

For decades, Oman’s energy story has been written in the language of oil and gas. These resources built the nation, powered its development, and connected it to global markets. Today, however, a new chapter is taking shape—one led not by black gold, but by a clean, colourless gas: green hydrogen. This shift is not about abandoning the past but building on its success to secure a sustainable future.

Oman is making a strategic bet on green hydrogen, and the Hydrofuel Oman study has helped turn this ambition into a credible, investable pathway. Far from being a niche experiment, green hydrogen is emerging as a national strategy—one that could position Oman as a global energy exporter once again, this time aligned with the demands of the 21st century.

Turning Sunshine into a Global Commodity

Green hydrogen is produced by using renewable electricity—primarily solar and wind—to power electrolysers that split water into hydrogen and oxygen. Because the process is powered entirely by clean energy, the resulting hydrogen carries no carbon emissions. Crucially, hydrogen can be liquefied and shipped across oceans, much like liquefied natural gas, transforming Oman’s abundant sunshine into a globally tradable commodity.

The Hydrofuel study, conducted with international and local stakeholders, moved the conversation beyond whether Oman could produce green hydrogen to how, where, and at what scale. Its findings confirmed that Oman’s natural advantages—solar intensity, land availability, and access to ports—give it a competitive edge few countries can match.

Scale, Economics, and Strategic Geography

The study identified vast areas in Al Wusta Governorate, particularly around Duqm, as ideal hydrogen hubs. These locations offer a rare trifecta: strong solar and wind resources, proximity to the sea for desalination, and direct access to export infrastructure. Most importantly, the analysis confirmed that Oman can produce green hydrogen at globally competitive costs—a critical breakthrough that turns ambition into commercial reality.

This cost advantage is what attracts international investors and positions Oman as a serious contender in the global hydrogen race. It signals that green hydrogen is no longer a distant promise but a viable industry ready for scale.

Beyond Exports: A National Transformation

While export potential dominates headlines, the domestic impact could be just as profound. Green hydrogen development supports economic diversification, creating high-skilled jobs in engineering, operations, logistics, and technology, while stimulating local supply chains and entrepreneurship.

It also strengthens Oman’s sustainability credentials, enhancing its global standing as a forward-looking energy producer. Beyond reputation, the expertise developed in hydrogen production, storage, and transport represents long-term knowledge capital—positioning Oman not just as a supplier of energy, but as a global reference point for hydrogen expertise.

Building the Future

The road ahead will require sustained investment, clear regulation, workforce development, and strong collaboration between government, OQ, academia, and international partners. The Hydrofuel study provides more than data—it offers a destination.

It outlines a future where Oman’s climate becomes an economic asset, where renewable energy powers both exports and domestic resilience, and where the Sultanate helps define the next era of global energy leadership. If executed well, the world will not only buy Oman’s green hydrogen—it will look to Oman for lessons on how to build a clean energy economy.

Hydrogen certification is not merely a regulatory obligation; it is the foundation upon which the green hydrogen economy will function.

Eng. Ruwaida Mohamed Al Hinai

Graduate Renewable Energy Engineer

As Oman’s giga-scale export vision rises to prominence as a strategic player in the global green hydrogen race, attention is turning from ambition to assurance, from production targets to the foundational systems that lend those targets credibility. Among these systems, certification stands paramount.

Green hydrogen commands a significantly higher market value, often two to three times the cost of grey or black hydrogen. Yet, despite this premium, the molecules themselves are chemically identical; it is the method of production and its associated carbon footprint that define their true difference.

Without certification, green hydrogen remains a claim, not a commodity.

This research focuses on the development and implications of certifying green hydrogen, and how Oman can craft a system that is both internationally credible and locally viable. It draws upon case studies, interview insights, and comparative frameworks to offer a model that not only tracks carbon but builds market trust.

Fragmentation in Standards, Friction in Trade

Hydrogen certification is not merely a regulatory obligation; it is the foundation upon which the green hydrogen economy will function.

It ensures that the hydrogen produced meets environmental thresholds, is derived from renewable energy, and uses responsibly sourced water. But certification also enables cross-border trade, access to green finance, and consumer confidence, especially for derivative products like green ammonia, green steel, or synthetic fuels.

At present, a diversity of certification schemes exists, each reflecting the regulatory ethos of its origin country or region. Certification systems diverge in several critical areas, including how they define lifecycle emissions boundaries, ranging from cradle-to-gate to cradle-to-grave. Requirements for renewable energy and water sourcing also vary, with some schemes imposing more explicit criteria than others. Finally, chain of custody (CoC) models differs significantly; from mass balance approaches to blockchain-based identity preservation, traceability remains inconsistent and often incompatible across systems.

This lack of harmonization observed makes it difficult for Omani hydrogen to navigate export frameworks, particularly in jurisdictions where a directive imposes strict conditions for hydrogen imports.

Voices from the Field

The perspectives highlight a complex web of operational, financial, and policy-related challenges. Interviewees identified certification as a key obstacle to financing, with the absence of pre-certification mechanisms creating uncertainty,. Developers also raised concerns over the lack of harmonized emissions metrics, which can lead to costly double certification to satisfy varying international standards. Most critically, stakeholders noted that current governance structures are dominated by European institutions, excluding producer nations like Oman and the Global South from shaping the very rules that govern their market access.

One interviewee noted: “Certification must go beyond carbon. It must reflect equity. Right now, it does not.”

The most compelling visions for ideal certification were not only about verifying carbon performance but about creating a trusted and fair foundation for a global green hydrogen economy. For this to be achieved, certification must evolve beyond compliance and become a vehicle for inclusive, cooperative progress. To further illustrate the interview findings, Figure 1 summarizes the key elements identified by participants as critical for an effective green hydrogen certification scheme.

Setting the Scene: How Research and Development and Innovation (RDI) is Shaping Oman’s Green Energy Landscape

Research, Development, and Innovation (RDI) form a driving force of any nation’s growth and progress. Building a strong and connected RDI ecosystem can unlock significant impact which can drives economic advancement, diversification, and sustainable development. In Oman, RDI extends across a wide range of focus areas — from Oil and Gas and logistics to the growing fields of renewable energy and energy transition — with no boundaries limiting its potential or reach.

There is often a common perception that RDI is the responsibility of the academic sector alone, with the government’s role limited to promoting and supporting activities within universities. However, RDI extends far beyond academic boundaries, it thrives through active collaboration between government, industry, academia, and Small and Medium Enterprises (SMEs), each playing a complementary role in translating knowledge into real-world impact.

RDI is a continuous journey that delivers both short-term results and long-term strategic impact. Through collaborative research and applied innovation, Through collaborative research and applied innovation, RDI continues to turn ideas into practical solutions that accelerate the transition toward a low-carbon future.

As we set the scene for understanding how research translates into national outcomes, it becomes essential to explore how ideas evolve from their early exploration in laboratories to their realization in economy and industry. To better understand this progression and how innovations move toward real-world implementation, the Technology Readiness Level (TRL) framework — originally developed by NASA — provides a useful structure.  The TRL is a nine-level scale used to assess the maturity of a technology. This framework provides a clear structure for tracking progress along the RDI journey, helping researchers, industries, and policymakers align their efforts and resources at each stage of technological development. Through this lens, RDI can be viewed across three main stages: Knowledge Development, Technology Development, and Business Development.

• Knowledge Development which is mapped by TRL 1-3, focuses on generating new scientific understanding and building a foundation of expertise. This stage often takes place within universities and research institutions, where ideas are explored and theories are tested to expand the collective knowledge base.
• Technology Development bridges the gap between research and application, which is mapped by TRL 4-6. It involves transforming knowledge into tangible and applied solutions which involves developing prototypes, conducting pilot projects, and validating technologies that address real-world challenges.
• Business Development, which is mapped by TRL 7-9 represents the stage where innovation meets the market. It focuses on commercialization, scaling, and value creation, in which turning validated technologies into viable products or services that contribute to economic diversification and national competitiveness.

Together, these three stages illustrate how RDI evolves from concept to impact, ensuring that research outcomes contribute directly to Oman’s vision 2040 and economic diversification efforts. In this context, RDI can become the foundation of the energy transition which enables breakthroughs, empowers local expertise, maximizes In Country Value (ICV), and links national priorities with scientific and industrial progress. It is through this alignment that Oman continues to transform its aspirations for sustainability into impactful results that advance Oman’s sustainability goals.

Translating Knowledge into Real-World Impact

Researchers often encounter significant hurdles when attempting to translate their extensive knowledge and scientific expertise into tangible industrial solutions or commercial products. As outlined in the Technology Readiness Levels (TRL) framework in the above section, the transition from knowledge development to applied research demands a shift in focus toward practicality, scalability, and real-world implementation, which introduces new sets of challenges. These challenges can originate from various factors, such as:

• Limited financial support to transition from knowledge-based research to applied research, which typically requires substantial funding to develop prototypes and establish pilot-scale projects.
• Limited business orientation among researchers, as only a few possess the entrepreneurial mindset or niche expertise necessary to capitalize on market opportunities and drive commercialization or technology transfer.
• Insufficient collaboration between academia and industry, leading to a gap in aligning research outcomes with real market or industrial needs.
• Regulatory and administrative complexities, which can slow down the process of testing, validating, and scaling innovations from the lab to industry.
• Challenges in advancing technology development, where promising concepts often struggle to progress due to the absence of technical infrastructure or specialized expertise that bridge the gap between laboratory results and industrial-scale solutions.

Building an Ecosystem, Not Just Projects

Overcoming these challenges requires more than ad-hoc and isolated interventions,  it calls for a well-connected ecosystem that bridges research, industry, and commercialization. Addressing the gaps between knowledge creation, technology development, linking research with industry needs and market adoption require coordinated efforts, targeted programs, and shared responsibility among stakeholders. In Oman, this shift is already taking shape through various initiatives and structured programs designed to empower researchers, strengthen collaboration, and accelerate the translation of research into industrial solutions.

The Ministry of Higher Education, Research and Innovation (MoHERI) plays a central role in strengthening Oman’s RDI ecosystem by supporting applied research and innovation across national priority areas. Through targeted programs such as the Strategic Research Program, and Innovation Support Program, MoHERI channels funding toward projects that contribute to sustainable development and economic diversification. These programs not only empower researchers to address real industrial and environmental challenges but also encourage collaboration between universities, government entities, and industry partners. By aligning research priorities with Oman Vision 2040 and international indices such as Global Innovation Index (GII), MoHERI ensures that national efforts in RDI translate into tangible outcomes that drive progress across the RDI ecosystem.

Additionally, among the key examples is EJAAD, one of MoHERI’s well-established programs that plays a central role in connecting government, academia, and industry to address real challenges through research and development. By linking researchers with industrial needs, EJAAD transforms theoretical knowledge into applied solutions that contribute directly to national priorities such as energy transition, hydrogen development, and energy efficiency.

A notable example is EJAAD’s collaboration in the area of Hydrogen is the joint project between Oman Liquefied Natural Gas (OLNG) company and the German University of Technology in Oman (Gutech), which focuses on hydrogen transportation and assessing the feasibility of hydrogen blending within Oman’s existing gas infrastructure. This project holds particular importance as it explores how hydrogen can be integrated into the current energy infrastructure with minimal disruption, providing a cost-effective pathway for decarbonization. By studying the technical, and economic aspects of hydrogen blending, the project not only supports the development of a future hydrogen economy but also lays the groundwork for scaling similar solutions across other industrial networks. Beyond its technical outcomes, this collaboration has fostered strong industry–academia engagement, built local capacity in emerging hydrogen technologies, and demonstrated how applied research can translate into practical innovations that strengthen Oman’s position in the global energy transition.

This approach reflects a broader understanding that sustainable innovation comes not from individual projects alone, but from building an ecosystem that enables them to thrive.

Lessons from the Field: What We’ve Learned at EJAAD

Through its ongoing work across research and industry, EJAAD has gathered valuable lessons on how collaboration can transform ideas into meaningful outcomes. The journey has shown that research and innovation succeed not only through funding or technology, but through clear alignment, shared purpose, and sustained engagement among all stakeholders.

One of the key lessons learned is the importance of defining the problem clearly from the beginning. When challenges are accurately framed by industry partners, researchers can direct their efforts toward solutions that are practical and ready for application. This clarity ensures that the research outcomes move beyond reports and into implementation, where real impact is achieved.

Another important insight is the value of consistent communication and trust. Many promising projects face delays not because of technical barriers, but because of misaligned expectations or limited dialogue. EJAAD’s structured process of challenge identification, proposal development, and ongoing feedback has helped overcome these barriers, creating a sense of shared ownership and accountability.

The experience has also highlighted the importance of building local capacity. Involving young researchers, students and fresh graduates in applied projects equips them with hands-on experience, strengthens national expertise, and fosters a culture of innovation that continues beyond the project itself.

Additionally, from the viewpoint of the energy transition, one of the key lessons is that sustainability cannot be achieved through isolated projects alone as it requires an integrated approach where research, national strategies, and industry move together. EJAAD’s projects in hydrogen, energy efficiency and renewable integration have shown that collaboration between industrial, academia and government teams is essential to ensure that solutions are not only innovative but also practical and scalable.

Above all, EJAAD’s journey has shown that creating real impact takes time. Transforming research into tangible results, whether technological, economic, or environmental, requires close collaboration, and continued commitment. When these elements come together, RDI becomes a key enabler of national growth and sustainability.

Summary

Oman’s path from labs to landscape reflects a growing maturity in how research and innovation are shaping its energy future. By connecting national priorities with local expertise, initiatives like EJAAD are transforming knowledge and theory into applied solutions that advance sustainability, excel industrial operations, build local capabilities, and accelerate the energy transition. This journey proves that innovation, when driven by collective effort and clear direction, can deliver meaningful change — transforming research into value and advancing Oman’s global innovation standing.

This study explores how digital transformation and ESG practices can strengthen the sustainability performance of Oman’s energy sector, a cornerstone of the national economy now under rising pressure to meet evolving sustainability standards.

Dr. Mohd Abass Bhat

Khulood Said Al-Namani

Alshaima Younis Alharrasi

Sara Moosa Al-Lawati

Maroa Khalfan Al-Hajri

As Oman progresses toward Vision 2040, the need to integrate Environmental, Social, and Governance (ESG) principles into energy operations has become increasingly urgent. However, ESG practices remain underutilized across the sector, and the digital capabilities that could accelerate this transition are not being fully leveraged. This research responds to that gap, underscoring the rising importance of digital transformation as a strategic enabler of ESG advancement.

Digital tools relating to innovation, organization, management, and resource capabilities can enhance transparency, accountability, and overall sustainability performance. Oman’s energy sector continues to face critical challenges that hinder its progress toward sustainability targets. Our study identified several gaps, including limited digital innovation, weak organizational structures, underdeveloped digital management systems, and insufficient integration of digital resources. The lack of clear alignment between digital practices and ESG outcomes has created a need for evidence-based insights to guide sector-wide improvements. By focusing on the digital factors influencing sustainability, this study aims to support national energy-transition strategies and contribute to long-term environmental, economic, and social progress. It also reinforces Oman’s potential to emerge as a regional leader in responsible, digitally driven energy development.

This study employs a cross-sectional design using quantitative methods to collect participant responses through a convenience-sample survey. The research targeted energy-sector companies such as Petroleum Development Oman (PDO), Occidental Petroleum (OXY), BP, and other related organizations, based on a sample of 143 lower- and middle-level managers. Data were analyzed using SmartPLS software to construct the measurement and structural models. With an emphasis on the links between digital transformation elements—digital innovation, digital management, digital organization, and digital resources—and their influence on digital adoption and ESG performance (Zhong et al., 2023), the study interprets the statistical outcomes in line with its objectives and existing literature.

The findings reveal that digital innovation significantly and positively contributes to digital adoption, which in turn enhances ESG outcomes. This highlights the importance of prioritizing advanced technologies and innovation as key strategic objectives. Although digital resources, digital management, and digital organization show positive correlations with digital adoption, their impacts were not statistically significant, indicating areas for further development or research.

The results suggest that digital innovation, digital management, digital organization, and digital resources can directly support sustainability performance and long-term success. Moreover, digital adoption plays a crucial mediating role by linking these factors to ESG transformation practices in the energy sector. While digital adoption shows positive relationships with the broader digitalization mechanisms, these effects were not statistically significant, indicating that further investment, capability building, and organizational readiness may be required.

Overall, the results encourage Oman’s energy sector to fully embrace digital transformation to support the national sustainability goals of Oman Vision 2040 and help organizations align their digitalization strategies with ESG principles. The study’s framework may also support developing countries seeking to strengthen traditional sectors through digitalization.

This research contributes to the theoretical landscape by evaluating the resource-based view (RBV) within the context of digital transformation and sustainability in the energy sector. Digital adoption emerged as a key mediator connecting internal digital capabilities to sustainable outcomes, highlighting its central role in the ESG transformation process. However, while digital adoption exhibited positive relationships with digital resources, digital organization, and digital management, these were not statistically significant, suggesting that these elements—though important—may require deeper organizational readiness or maturity to generate stronger impacts. The research thus offers a comprehensive assessment of the internal digital potential most influential in driving ESG performance.

The study also presents important practical implications at both national and global levels. Nationally, the findings urge Oman’s energy companies and stakeholders to view digital transformation not only as a technological transition but also as a strategic pathway for achieving the sustainability goals of Vision 2040. Organizations are encouraged to adopt and strengthen digitalization strategies aligned with ESG principles to succeed in their sustainability transitions. Internationally, the study offers a useful model for developing countries seeking to transform traditional sectors through digitalization. Aligning digital transformation with ESG principles promotes not only national economic progress but also inclusive, responsible, and sustainable growth aligned with global development agendas.

For future research, it is recommended to expand the sample size and include participants from diverse regions of Oman to generate deeper insights into how companies are implementing ESG and sustainability objectives. Additional time allocated to the research process would allow for more robust analysis and validation of findings. Qualitative methods could further enrich the study by capturing employee perspectives within energy-sector companies. Broader methodological approaches and partnerships with organizations may also ease access challenges and support more diverse data collection. Future studies should continue to explore various digitalization variables and similar hypotheses across different contexts related to ESG and sustainability, helping to build a consistent theoretical foundation for future research.

[This article is authored by a team of final-year accounting students from the University of Technology and Applied Sciences: Khulood Said Al-Namani, Alshaima Younis Alharrasi, Sara Moosa Al-Lawati, and Maroa Khalfan Al-Hajri under the supervision of Dr. Mohd Abass Bhat. The research was conducted as part of their graduation project in the 2024- 2025 academic year. This research is part of the 2024 block funding program under the Ministry of Higher Education, Research and Innovation.]

The 29th Conference of the Parties (COP29) to the United Nations Framework Convention on Climate Change (UNFCCC), held in Baku in November 2024 and dubbed the “Finance COP,” established a new Collective Quantified Goal on Climate Finance (NCQG). The agreement replaces the outdated 2009 pledge under which developed countries committed to providing $100 billion annually by 2020 to support developing nations in reducing emissions and adapting to climate change.

That target was never met, and the global climate finance gap has since widened. Current estimates suggest that between $500 billion and $1 trillion is required annually for climate mitigation and adaptation. After negotiations that extended 33 hours beyond the deadline, parties agreed to mobilize at least $300 billion per year for developing countries by 2035, with developed nations expected to take the lead.

While the agreement marks progress after years of stalled discussions under the Paris Agreement, it fell short of expectations for many developing countries. The shortfall may widen further following the anticipated withdrawal of the United States from the Paris Agreement in January 2025.

One of the most contentious issues at COP29 was whether developing countries should contribute to the Green Climate Fund. The final declaration encourages voluntary contributions, while criteria for mandatory participation will be discussed at COP30 in Brazil in 2025. Potential contributors include emerging economies classified by income levels and per capita emissions, a group that includes Gulf countries such as Qatar, Saudi Arabia, and the United Arab Emirates.

Although Gulf states are classified as developing, or non-Annex I, countries under the UNFCCC and are therefore not obligated to contribute, their wealth has made this status controversial. While voluntary contributions remain possible, mandatory obligations are unlikely to gain acceptance. Gulf countries face competing domestic priorities, including economic diversification, decarbonization, and addressing severe climate vulnerabilities.

Across the region, governments are pursuing ambitious diversification strategies to reduce dependence on oil and gas revenues. These plans span tourism, infrastructure, logistics, entertainment, and digital sectors and require investments worth hundreds of billions of dollars. Much of this transformation is state-led and financed through hydrocarbon revenues, at a time when oil price volatility is placing growing pressure on public finances.

The Gulf also faces a climate paradox. It is among the world’s most climate-vulnerable regions, grappling with extreme heat, water scarcity, and food insecurity, while remaining economically dependent on fossil fuels. Oil wealth has enabled adaptation through technological solutions such as desalination and food imports, but the global push to transition away from fossil fuels threatens the region’s long-term fiscal stability.

Despite resisting mandatory climate finance obligations, Gulf countries are significant investors in renewable energy and clean-energy projects globally. This reflects a preference for climate action that aligns with national interests rather than multilateral financial commitments.

Ultimately, Gulf countries are likely to pursue climate finance strategies that support economic diversification and domestic resilience. By investing in renewable industries and global clean-energy partnerships, they can contribute to climate action while safeguarding long-term socioeconomic stability.