Since 2017
Advancing Oman’s Energy Transition and the Decarbonisation of its Industrial Sectors
- Oman steadily advanced its ambition to build a resilient, hydrogen‑based economy, with early green hydrogen projects progressing into implementation despite growing global “hydrogen realism.”
- The Energy Dialogue helped address existing market and policy gaps by facilitating exchanges that connected supply, demand and enabling frameworks with a strong focus on industrial decarbonisation.
- A key priority was enabling future energy and hydrogen trade between the Gulf region and Europe.
- The Energy Dialogue advanced cooperation by promoting market‑creation instruments such as H2Global and supporting Omani stakeholders in navigating tender processes, while at the same time opening concrete cooperation opportunities for German companies, including participation in emerging project consortia.
Energy security
Decarbonisation
Foreign Trade Promotion
The Omani‑German Energy Dialogue is unlocking value creation potentials from the emerging green hydrogen economy. Even as global “hydrogen realism” set in, Oman progresses with first projects coming to fruition. At the same time, renewables are expanding across the power sector, driven also by the in 2025 launched Net Zero Center to support Oman’s pathway toward climate neutrality 2050.
The Energy Dialogue responds to these developments by fostering structured exchanges that help bridge the gap between supply, demand, and enabling policies, with a particular focus on strengthening local offtake solutions and advancing industrial decarbonisation.
Ramping up the hydrogen economy
The dialogue supported market development for the hydrogen economy by bringing funding instruments such as H2Global to Oman’s attention.
Through the H2Global Info Session and the Hintco Roadshow for the 2nd H2Global auction round in Muscat in May 2025, Omani stakeholders gained further insight into H2Global’s double-sided auction mechanisms, eligibility criteria, and project preparation requirements – key elements of this critical import scheme.
Together, these efforts positioned Oman as a regional frontrunner in green hydrogen and green steel, while also creating strong cooperation opportunities for German companies in energy efficiency technologies and other high-growth sectors.
Pioneering hydrogen trade between the Gulf region and Europe
The hydrogen economy offered ample potential for energy trade and technology cooperation. To tap into this potential, the Energy Dialogue promoted private sector cooperation between German companies and Oman through joint events and conversations at the World Hydrogen Summit in May 2025. It also drove the conversation on building cross-regional supply chains, bringing hydrogen trade between the Gulf region and Europe one step closer to reality.
More information
1. What has been the most tangible outcome or impact of your partnership activities in 2025?
The most tangible outcome was showcasing Oman’s role in Gulf-Europe hydrogen trade at the World Hydrogen Summit through a high-level dialogue between the ministries of Germany, Oman, and the UAE, alongside strengthened cooperation and hydrogen support ramp-up through H2Global-focused exchanges.
2. Which focus areas were particularly relevant for your country in 2025 and why?
A key challenge was navigating the phase of ‘hydrogen realism’, in which a large project pipeline moved into implementation with some projects progressing while others were cancelled or rescoped, making it essential to identify truly viable pathways for Oman’s hydrogen economy.
Secondly, strengthening local hydrogen offtake emerged as a critical priority, as Oman worked towards securing long-term offtake agreements with Europe and Germany while simultaneously building domestic demand to advance projects and ensure bankability in the near term.
3. What were the main challenges in implementing activities in 2025, and how were they addressed?
Uncertainty around hydrogen offtake mechanisms represented a key challenge, as project developers continued to face difficulties securing predictable demand and viable commercial structures. This was addressed by keeping political communication channels open, remaining ready to support emerging project consortia, and additionally shifting the focus towards strengthening local offtake while also expanding into new areas such as renewable‑energy integration and energy‑efficiency solutions, which are set to feature more prominently in the 2026 agenda.
4. How did your activities contribute to the selected overarching goals (energy security, decarbonisation, foreign trade promotion)?
Activities contributed to energy security by supporting Oman in advancing a reliable, diversified, and renewable‑based hydrogen and power system, including work on local offtake, renewable‑energy integration, and early project viability. They supported decarbonisation by promoting industrial transformation through discussions on green hydrogen, local H₂ use, and the ramp‑up of a green‑steel sector. At the same time, the dialogue strengthened foreign trade promotion by advancing cross‑regional hydrogen trade with Europe, through targeted discussions with potential German importers and value‑chain companies at the World Hydrogen Summit. The H2Global sessions also opened concrete cooperation and market‑entry opportunities for German companies, reinforcing long‑term energy security on both sides.
5. What concrete activities are planned for 2026?
Activities planned for 2026 include a series of thematic webinars and knowledge exchange on industrial decarbonisation, renewable‑energy integration, and energy‑efficiency measures, which will deepen technical exchange and address emerging priorities identified in the dialogue.
