Oman is looking to green hydrogen to decarbonize its transport sector

OQ Alternative Energy (OQAE) and Asyad Group have signed an offtake term sheet to explore the use of green hydrogen in mobility applications in Oman, linking the country’s emerging hydrogen production capacity with potential low-carbon transport solutions.

Under the agreement, Asyad will explore the use of green hydrogen produced through OQAE’s green hydrogen deployment project in Duqm for hydrogen-powered mobility applications. The initiative is intended to support the development of the infrastructure, operational capabilities and market experience needed to establish a hydrogen mobility ecosystem in Oman.

The collaboration brings together OQAE’s green hydrogen production capabilities and Asyad’s logistics and mobility operations, with the partners seeking to assess how hydrogen can be applied to transport and other hard-to-abate sectors. The project could also provide a testing ground for technologies and business models ahead of wider commercial deployment.

“The next phase of Oman’s hydrogen journey is about moving from potential to practical application,” said Salim Al Kamyani, CEO of OQ Alternative Energy. “This partnership with Asyad is an important step in that direction, connecting green hydrogen production with a real mobility use case and creating an opportunity to build experience across the full value chain.”

Al Kamyani added that demonstration projects can help develop local capabilities, infrastructure and market confidence while providing insights into the technologies and commercial models required to scale the hydrogen economy.

He said Oman has the potential to become a competitive producer and exporter of renewable energy and green hydrogen, while developing domestic demand will also be important to building a resilient hydrogen ecosystem.

Ahmed Al Bulushi, CEO of Asyad Drydock & Infrastructure Services, said the collaboration would allow the group to explore green hydrogen as part of the transport sector’s decarbonization efforts and assess applications across the logistics and mobility value chain.

He added that Asyad’s participation is intended to build operational experience, partnerships and infrastructure that could support the development of low-carbon transport solutions and strengthen Oman’s position as a logistics hub.