4 days ago
Oman's OQAE targets over 10 GW renewables by 2035
MUSCAT: OQ Alternative Energy (OQAE) – the clean energy arm of integrated Omani energy group OQ – has announced plans to develop over 10 gigawatts (GW) of renewable energy production capacity within a decade. It also aims to bring a portion of its green hydrogen production capacity online within this timeframe.
According to Najla al Jamali, OQ Alternative Energy CEO, these goals are aligned with the company's decarbonisation and energy transition strategies, consistent with its mandate as Oman's national champion for clean-energy development.
'By 2035, I envision OQAE exceeding 10 GW in renewable energy production and becoming a regional leader, possibly expanding beyond Oman. I would like to see our hydrogen projects supplying both domestic and international markets. Ideally, we would minimise export dependencies by fostering local offtake,' Al Jamali said in an interview with The Energy Year, a London-based news portal.
The rollout of this portfolio is already underway, with the recent launch of construction of three renewable energy projects – the Riyah 1 and Riyah 2 wind farms and the North Oman Solar project – with a combined capacity of around 300 MW, the output of which is contracted to Petroleum Development Oman (PDO), the country's largest oil and gas producer. In addition, OQAE is supporting another 300 MW solar farm to provide clean energy for the Marsa LNG bunkering project currently under construction at Sohar Port.
In the interview, Al Jamali highlighted the critical role of international partnerships in delivering OQAE's ambitious clean energy agenda. These partners contribute not only equity but also advanced technology and operational expertise. Many of them – including oil and gas producers and hard-to-abate industries – are also prospective customers for OQAE's clean energy output as they pursue their own decarbonisation pathways.
'In clean energy, our customer base includes PDO, Marsa LNG, Oxy and OQ Exploration & Production (OQEP),' she noted. 'Our potential customers include oil and gas companies such as PDO, BP, Shell and Oxy, as well as industrial players like Vale, Jindal and Sohar Aluminium. Within OQ Group itself, we also look to serve the refinery and plants in Salalah.'
Significantly, OQAE is expanding its role in solar and wind energy development aimed at meeting Oman's national renewable energy targets. Earlier this year, OQAE secured a commitment for a stake of up to 25 per cent in all future renewable energy projects procured by Nama Power and Water Procurement Company (PWP) – the sole procurer of new power and water capacity in Oman. This commitment encompasses all upcoming solar and wind projects (and potentially other forms of alternative energy as well), beginning with the Ibri III Solar PV project, a 500 MW scheme slated for development in Al Dhahirah Governorate.
'As the national champion, we have rights in Nama Power and Water Procurement tenders. Three projects have already been floated. Ibri III has been awarded, while the Jaalan Bani Bu Ali and Dhofar Wind 2 projects are progressing. Nama Power and Water Procurement has also allocated around 1 GW of wind capacity to us, with some sites already identified and others pending selection,' Al Jamali explained.
On the progress of OQAE's green hydrogen ventures, the CEO stated: 'We expect our hydrogen projects to advance from around 2030 onward, with some developments extending into the following decade.'
She added: 'Our Hyport project features a 500 MW electrolyser. Green Energy Oman and Salalah H2 each represents around 2 GW. Collectively, these three legacy projects are expected to deliver approximately 400 kilotonnes per year. We believe they are among the most advanced in the region, having gathered wind data and progressed to the pre-FEED stage.'
