Latest news with #MinistryofEnergyandMinerals
Observer
3 days ago
- Business
- Observer
Oman's first renewable energy storage project imminent
MUSCAT: The Sultanate of Oman is making significant efforts to implement green energy projects, as "Oman Vision 2040" aims for these projects to contribute nearly 30 per cent of the country's total electricity generation by 2030. Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, revealed that five to six new renewable energy projects — focused on wind and solar power — will commence this year, with particular emphasis on wind energy due to Oman's strong potential in this sector. Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals Al Aufi noted that these projects will be located in various sites where wind energy has been measured, mostly in the Al Wusta and Dhofar governorates. They are expected to begin production by the end of 2027, generating over 2,000 megawatts. He affirmed that the Ministry of Energy and Minerals is collaborating with its partners in Nama Group and the Authority for Public Services Regulation to explore the best methods for storing renewable energy, whether through conventional or innovative approaches applicable in Oman. He also confirmed that an announcement regarding Oman's first renewable energy storage project will be made soon. The minister added that these projects will strengthen Oman's transition to renewable energy while creating vast opportunities for industries reliant on clean and sustainable power. He highlighted that Oman has already launched the "Manah 1" and "Manah 2" renewable energy plants, with a combined capacity of around 1,000 megawatts. Initial results indicate that each plant is producing over 500 megawatts, exceeding expectations. Furthermore, he explained that the Ministry of Energy and Minerals, the Ministry of Transport, Communications and Information Technology; and Petroleum Development Oman (PDO) are working to establish a hydrogen pathway by setting up production and supply stations within concession areas. This initiative aims to use hydrogen as fuel for trucks operating between these zones. — ONA
Muscat Daily
3 days ago
- Business
- Muscat Daily
Oman to launch its first renewable energy storage project
Muscat – Oman will soon announce its first renewable energy storage project as part of ongoing efforts to expand clean energy capacity and reduce dependence on conventional power sources. H E Salem bin Nasser al Aufi, Minister of Energy and Minerals, has confirmed that five to six new wind and solar projects are scheduled to begin this year, with particular focus on wind power due to the sultanate's strong potential in this area. These projects are expected to begin generating more than 2,000MW of electricity by the end of 2027. A majority of the wind projects will be located in Al Wusta and Dhofar, where long-term wind measurements have confirmed viable generation capacity. 'Ministry of Energy and Minerals (MEM) is working with Nama Group and the Authority for Public Services Regulation to identify the most suitable solutions for energy storage, whether through conventional or emerging technologies,' H E Aufi said. 'The first storage project will be announced soon.' H E Salem bin Nasser al Aufi, Minister of Energy and Minerals He added that the projects support Oman's energy transition strategy and create opportunities to develop industries powered by clean energy. Oman Vision 2040 targets renewable energy to make up around 30% of the country's total electricity generation by 2030. In line with this, the Manah 1 and Manah 2 solar plants have been launched, with a combined capacity of approximately 1,000MW. MEM is also working in coordination with Ministry of Transport, Communications and Information Technology and Petroleum Development Oman to establish a hydrogen corridor. The initiative aims to set up hydrogen production and supply stations in concession areas, enabling the fuelling of trucks operating between these.
Observer
27-05-2025
- Business
- Observer
Rethinking AI for the real world of sustainable energy transition
Artificial Intelligence (AI) has come a long way. Today, it can write, translate and analyse large volumes of information. But to help solve the urgent challenges of climate change and clean energy, AI must move beyond language. It must support real-world planning, decisions and action. Oman is taking bold steps towards sustainability. With its commitment to net-zero emissions by 2050, the country has launched the Oman Net Zero Centre under the Ministry of Energy and Minerals. This centre will guide the national strategy, ensuring a transition that protects the environment, reduces costs, creates jobs and secures the energy supply. To make this transition successful, we need smart tools that can manage complex energy systems; and guide policy and investment choices. This is where AI can make a real difference, not just as a digital assistant but as a partner in designing and operating better sustainable systems. For example, green hydrogen is a key pillar of Oman's strategy. Major projects are being planned to turn Oman into a global hub for hydrogen production and export. AI can help these projects by modelling supply chains, optimising storage and transport; and forecasting international market dynamics to facilitate sustainable business growth. Similarly, AI can enhance the power sector by improving forecasting for solar and wind production, managing energy storage and increasing grid reliability. In transport, AI can support the rollout of electric vehicles and smart charging networks. In industry, it can identify cost-effective routes to shift from fossil fuels to electricity or hydrogen, helping avoid stranded investments. AI should be aligned with the five goals of Oman's net-zero pathway: environmental sustainability, energy affordability, economic growth, job creation and energy security. With the right approach, AI can help balance trade-offs and support better decisions. The UAE has already recognised this opportunity through the establishment of the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), which is advancing research in AI for national transformation. Oman too can benefit by investing in similar initiatives. A dedicated centre or academic hub for AI in energy, climate and sustainability would complement the goals of the Oman Net Zero Centre and strengthen our national capabilities. As Oman builds its green hydrogen infrastructure and decarbonises its energy systems, AI must become part of the solution. It should be trained not just on data, but on the realities of engineering, economics and the climate. Now is the time to think beyond conventional uses of AI. If applied with purpose, AI can help Oman meet its Oman Vision 2040 and Net Zero 2050 goals and become a regional leader in smart and sustainable development. Dr Muhammad Abdul Qyyum The writer is Assistant Professor, Department of Petroleum and Chemical Engineering, Sultan Qaboos University.
Observer
27-05-2025
- Business
- Observer
Oman launches national company to regulate mineral exports and boost revenues
MUSCAT: In a significant move to optimise the economic potential of its mineral wealth, the Ministry of Energy and Minerals has announced the establishment of Oman Minerals Trading Company as the central authority to oversee the marketing and export of mineral resources from the Sultanate of Oman. The initiative is formalised through Ministerial Resolution No 18/2025, issued by Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals. The resolution marks a key step in reforming the mineral management system and aligns with Oman Vision 2040's goal of sustainable, diversified economic growth. It aims to address existing structural challenges in the mineral sector — such as fragmented marketing, price instability and the dominance of intermediaries — by centralising export control under a national entity. KEY PROVISIONS FOR TRANSPARENCY AND MARKET STABILITY Under the new regulation, gypsum and chrome ore exports will be strictly monitored. Export of raw chrome ore will require a minimum concentration of 36%, while processed ore can be exported at any concentration upon Ministry approval. Local market needs will be prioritised before exports are approved, a policy that supports domestic manufacturing and ensures stability in local supply chains. The regulation also seeks to standardise contracts, enhance negotiation leverage with international buyers and improve pricing transparency for Omani ores — factors that have historically impacted competitiveness despite strong production levels. In 2024 alone, Oman produced about 14 million tons of gypsum across 15 licensed sites and 300,000 tonnes of chrome ore from 29 licensees. However, revenue gains have been diluted by inconsistent marketing and a lack of pricing discipline. STRATEGIC ROLE OF OMAN MINERALS TRADING COMPANY As a subsidiary of Minerals Development Oman, the new trading firm will manage exports, unify contract terms, enforce quality specifications and negotiate international sales. This professionalised approach is expected to lift the average price of Omani minerals and boost national income. Dr Salah bin Hafiz al Dhahab, Director General of Investments at the Ministry, described the move as a 'pivotal milestone,' adding that it enables the government to streamline the export process, reduce price manipulation and better monitor sectoral returns. The decision is also designed to: a. Improve the efficiency of logistics and export operations. b. Increase transparency and curb rent-seeking behaviour. c. Support SMEs involved in supply chains. d. Create more jobs and promote local content through in-country value (ICV) initiatives. The resolution falls under the Ministry's broader 'Majd' initiative, which aims to evaluate and enhance local content across the energy and minerals sectors. Companies will be required to submit ICV plans and support domestic manufacturing activities that add value to raw mineral exports. ONE-YEAR TRANSITION PERIOD To ensure a smooth shift, a one-year transitional period has been granted. During this time, companies can conclude existing contracts and adapt to the new system. The Ministry also plans to conduct orientation and training workshops to support stakeholders and build internal capacity. Dr Al Dhahab emphasised that the transformation reflects the Ministry's broader institutional reform following the merger of energy and minerals portfolios. 'With clearer policies, enhanced geological databases and improved investor privileges, we are creating a transparent and regulated business environment that meets the goals of Oman Vision 2040,' he noted. By streamlining mineral exports and empowering a centralised entity, Oman aims to attract more reliable investments, strengthen national industries and secure better returns from its abundant mineral resources.
Muscat Daily
27-05-2025
- Business
- Muscat Daily
Oman to set up new state-owned firm to manage mineral resources and exports
Muscat – Oman's Ministry of Energy and Minerals on Tuesday issued a decision to establish a national company named the Oman Minerals Trading Company (OMTC). The company aims to regulate the marketing and export of minerals within the sultanate and enhance the local added value of the country's natural resources. This initiative forms part of a comprehensive reform of the mineral resource management system, aiming to integrate economic exploitation with environmental and social sustainability, according to a statement issued by the Ministry of Energy and Minerals. The decision also includes provisions for the regulation of gypsum and chromite ore exports, prioritising the fulfilment of local market demand before allowing any overseas sales. Furthermore, it mandates that the concentration of exported chromite ore must not be less than 36%. However, the export of processed chromite at any concentration will be permitted, subject to approval by the ministry. This move is intended to tighten control over marketing operations, enhance Oman's bargaining power in international markets, and promote greater transparency in the pricing of Omani mineral ores. This development comes in response to structural challenges facing the minerals market -particularly the proliferation of intermediaries and the lack of specialised marketing mechanisms. These challenges have contributed to a decline in prices, despite increased production. Currently, there are 15 valid mining licences for gypsum ore, with production reaching approximately 14mn tonnes in 2024. Meanwhile, there are 29 valid licences for chromite ore, with output during the same period totalling around 300,000 tonnes. These figures underscore the abundance of mineral resources in the sultanate and the necessity for a unified institutional management framework to ensure optimal utilisation and marketing, thereby contributing to increased national revenue. Oman Minerals Trading Company, a subsidiary of the Oman Minerals Development Company, will be responsible for centrally managing exports, standardising contracts and specifications, and conducting negotiations with international buyers in accordance with professional standards. These measures are expected to increase the average price of exported raw materials and boost the nation's income. The new regulations aim to reduce price manipulation, improve the efficiency of transportation and export operations, enhance market transparency, and enable the government to better monitor rents and returns. The decision is also expected to support local manufacturing and employment opportunities, particularly for small and medium-sized enterprises (SMEs) involved in supply chains. It will foster a business environment based on efficiency, integration, and long-term economic sustainability. The ministry has granted a one-year transition period for companies to terminate existing contracts and adapt to the new marketing mechanism. It also plans to organise induction and training sessions for stakeholders, alongside the training of specialised personnel to manage sales and negotiation processes under the new framework.
