On October 16, 2024, the H2-Diplo Decarbonization Dialogue – Investing in Green Growth: Oman’s Role as a Front Runner in the Green Hydrogen Market brought together about 90 participants in Muscat. Senior government officials, business leaders, and hydrogen experts from Oman, Germany, and other nations gathered to discuss the future of green hydrogen. The event was jointly organized by AHK Oman and GIZ under the H2-Diplo initiative on behalf of the German Embassy, with key contributions from our AHK colleague Dr. Ruth Prelicz and Maria Noack from GIZ.
The dialogue underscored Oman’s significant potential in the global green hydrogen market, aligning seamlessly with Germany's ambitions to import large volumes of hydrogen as part of its strategy to decarbonize hard-to-abate sectors. H.E. Salim Al Aufi, Oman’s Minister of Energy and Minerals, and H.E. Dirk Lölke, German Ambassador to Oman, opened the event, emphasizing the pivotal role of green hydrogen in achieving decarbonization and driving economic diversification and the relevance of international cooperation in this field.
Eng. Abdulaziz Al Shidhani, Managing Director of Hydrom, presented Oman’s comprehensive plans for green hydrogen development in his keynote speech. He outlined existing projects and highlighted potential areas for further international collaboration, positioning Oman as a critical player in the emerging green hydrogen economy.
Markus Exenberger, Executive Director of the H2Global Foundation, introduced the German Federal Ministry for Economic Affairs and Climate Action (BMWK)-initiated H2Global framework. This innovative program aims to accelerate the development of a global green hydrogen market through a contract-for-difference mechanism. By linking supply and demand via a dual-auction process, H2Global seeks to mitigate market risks and secure hydrogen imports into Europe and Germany with the support of international partners.
The event also highlighted the interest of both local and international financial institutions in the emerging hydrogen sector. Contributions from representatives of Deutsche Bank and Sohar International Bank made it clear that banks are closely monitoring developments. Adding to the discussion, VNG shared valuable insights into the challenges faced by midstream developers. As a key player in establishing hydrogen infrastructure in Germany—such as pipelines and storage facilities—VNG also acts as an aggregator, bridging the gap between hydrogen producers and end users.
For German companies, the dialogue provided an invaluable opportunity to engage directly with Omani decision-makers and explore avenues for collaboration. Many firms, including those based in the UAE, found the trip to Oman worthwhile, recognizing the country’s strategic advantages in the hydrogen sector. With abundant renewable energy resources, a prime geographic location, and strong governmental support, Oman is well positioned to become a leader in green hydrogen production and export, attracting significant international interest.
Beyond being a platform for dialogue, the event demonstrated the strong and growing partnership between Oman and Germany in advancing the energy transition. By fostering connections and facilitating collaboration, the H2-Diplo initiative, supported by AHK Oman and GIZ, continues to lay the groundwork for transformative partnerships in the global hydrogen sector.
