Oman emerges as green energy hub in booming India trade

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MUSCAT: A recent report by India's Parliamentary Committee on External Affairs highlights Oman's pivotal role in New Delhi’s green energy ambitions and burgeoning trade partnership with the Gulf Cooperation Council (GCC).

The report, titled "India and Gulf Cooperation Council (GCC) – Contours of Cooperation," underscores significant investments in green hydrogen and solar technology within Oman, fueled by collaborative efforts with Indian companies. These partnerships position Oman as a potential regional hub for clean energy production and export.

"Investment in green technologies is significant," states the report, quoting the Secretary (CPV & OIA). "Companies are committing billions to green hydrogen and ammonia production in Oman and Egypt, potentially establishing Oman as a regional hub." Illustrative of this trend is Occior (formerly Azure Power), which plans to invest $2 billion in green hydrogen plants across Oman and Saudi Arabia. Such cross-border collaborations solidify the region's growing importance in the global clean energy landscape.

Furthermore, Oman's strategic location presents a distinct advantage for exporting green hydrogen to India and other GCC countries. The report emphasizes its existing energy infrastructure as a strong foundation for transitioning to renewable sources.

Bridging the trade deficit, largely driven by energy imports, is another prominent focus of the India-Oman partnership. The report cites Indian companies actively investing in Oman's green sectors, aiming to replicate successful models like the Sanmar Group. This Egyptian venture, backed by an Indian firm, solely produces petrochemicals for the Indian market.

"We are pursuing similar partnerships for fertilizers and other products," asserts the report. "While immediate export-import parity might not be achievable, these long-term investments pave the way for a sustainable future." Beyond bilateral agreements, Oman's membership in the International Solar Alliance (ISA) strengthens regional cooperation and fosters joint projects and knowledge sharing. Additionally, the report highlights India's Green Grids Initiative (GGI) and One Sun One World One Grid (OSOWOG) project, presenting opportunities for interconnected cross-border grids and further solidifying Oman's position as a regional energy hub.

The report emphasizes that strategic investments in green hydrogen, participation in regional initiatives, and leveraging its advantageous location are key strategies for Oman to capitalize on the global clean energy transition. By embracing this future, Oman not only stands to reduce its trade deficit with India but also emerge as a leading player in the race towards a sustainable future.