Industry Updates

Oman considers implementing target of zero emissions by 2050

Oman's upstream oil and gas sector is evaluating a target of zero emissions by 2050, according to its Second Nationally Determined Contribution (NDC) report, which was recently submitted to the United Nations Framework Convention on Climate Change.

Interim targets set by the sultanate include the deployment of renewable energy and the deepening of energy efficiency actions, which are the 2030 carbon control plan pillars. They would enable the Oman to slow GHG emission growth and reduce them by 7% in 2030, compared to the business-as-usual scenario, the report said.

Additionally, the country's National Energy Strategy has set a target to derive 20% of electricity from renewables by 2027. To achieve this, it will need to develop at least 2.66 GW of renewables by then. The plan relies mainly on photovoltaic solar, accounting for about 79% of the capacity, with the remaining coming from wind farms, the report said.

Currently the majority of electricity in Oman is generated by burning crude oil (65%) and natural gas (35%).

In January, Shams Ad-Dhahira Generating Company (SAGC) began the commissioning of a 500 MW solar photovoltaic (PV) based power plant, based in Ibri, in the northwest of Oman. Commercial operations are due to begin at the end of the year, the report said.

Petroleum Development Oman (PDO) began operations of the sultanate's first utility-scale solar power plant, the 100 MW Amin photovoltaic power plant, in May 2020. In 2019, The 50 MW Dhofar wind farm, the sultanate's first utility scale wind farm, was connected to the grid.

Oman's economy is heavily reliant on its hydrocarbon sector. In 2017, the oil share of GDP was 39%, while non-oil sources accounted for 61%The Sultanate aims to reduce the oil share of GDP to 16% in 2030 and 8.4% by 2040, the report said.