Oman Signs MoU with Private Consortium to Develop Low-Carbon E-Methanol Project in Dhofar

The Sultanate of Oman has signed a strategic memorandum of understanding (MoU) with a private consortium to explore the development of a low-carbon e-methanol production and bunkering hub in the Dhofar region.

The agreement, announced on 5 November, was formalised between the Ministry of Transport, Communications and Information Technology (MTCIT) and a consortium comprising HIF Global, Acciona Nordex Green Hydrogen (ANGH), and Al Meera Investments.

Advancing Green Maritime Fuel and Shipping Decarbonisation

The proposed project aims to establish an integrated e-methanol supply and bunkering hub to support the decarbonisation of global shipping. E-methanol, produced using renewable electricity and captured carbon dioxide, is gaining traction as a viable low-emission marine fuel.

The collaboration aligns with Oman Vision 2040 and the Sultanate’s Logistics Strategy (SOLS 2050), both of which emphasise clean energy transition and sustainable logistics. It also supports the country’s national decarbonisation goals and broader ambitions to position Oman as a regional hub for green maritime solutions and low-carbon fuels.

Feasibility Studies and Regulatory Framework

Under the terms of the MoU, the consortium will conduct feasibility and techno-economic assessments to determine the requirements for developing a large-scale e-methanol facility in Dhofar. The studies will examine production, bunkering, and export potential, integrating wind and solar energy for green hydrogen generation, CO₂ capture from industrial or biogenic sources, and conversion into e-methanol.

The Ministry of Transport, Communications and Information Technology will coordinate with national authorities to support the regulatory process, including land allocation, policy facilitation, and potential investment incentives for the project.

Strategic Collaboration for E-Fuels Development

“This collaboration with the world leaders in e-fuels marks a significant step towards achieving Oman’s zero-carbon ambitions and establishing the Sultanate as a leader in green maritime solutions and the e-fuels major hub in the region,” said Said bin Hamoud bin Said Al Maawali, Minister of Transport, Communications and Information Technology of Oman.

Thorsten Herdan, CEO of HIF EMEA GmbH, added: “HIF Global brings proven e-fuels expertise with over three years of operational experience. Together with our consortium partners, we are proud to support Oman’s vision to lead in sustainable transport and energy.”

Oman’s Broader Clean Energy Push

The agreement underscores Oman’s growing focus on clean hydrogen, synthetic fuels, and carbon-neutral energy production as part of its strategy to diversify its energy mix. The Dhofar initiative complements ongoing national efforts to develop green hydrogen hubs and renewable-based industrial clusters across the country’s southern regions.

If realised, the Dhofar project could position Oman as a key regional supplier of low-carbon marine fuels, helping the global shipping sector meet International Maritime Organization (IMO) decarbonisation targets.