Germany's Habeck sees great potential for hydrogen production in Oman

German Economy Minister Robert Habeck has high hopes for the Gulf state of Oman as a future hydrogen producer.

"The potential to become a partner here, from the planning process to the installation of solar energy, electrolysis and the purchase of green hydrogen, is huge," he said on Tuesday during a visit to the capital Muscat.

To date, Oman has been heavily dependent on oil and gas, which make up a large proportion of its exports.

According to Germany Trade & Invest, the German foreign trade agency, 77% of the national Omani budget in 2022 came from oil and gas revenues.

However, the country wants to drive forward the production of hydrogen and attract foreign investment by 2030 on a scale last seen for oil and gas.

Oman is "hell-bent on transforming itself. So, there can be no doubt about that," said Habeck after talks with Energy Minister Salim al-Aufi and head of state Sultan Haitham bin Tarik.

The country has reserved an area roughly the size of Bavaria for the expansion of renewable energies and has only a fraction of the population of Germany.

"So there is space available, the solar radiation is fantastic and there are also good wind locations," he added.

Habeck said Oman was only just beginning to build up capacities for green hydrogen production, which can help the world cut harmful emissions. Hydrogen-powered cars are among the possibilities.

"But I think the whole thing will really get going towards the end of the decade," he said.