Oman Enters Global Solar Supply Chain With $1.6 Billion Polysilicon Plant At Sohar

Oman has taken a major step into the global high-tech manufacturing space with the launch of the United Solar Polysilicon (USP) facility at the Sohar Freezone. The project, developed with an investment of $1.6 billion, has recently begun operations and marks an important shift in the country’s industrial strategy toward clean energy and advanced technology manufacturing.

The USP facility is focused on producing high-purity polysilicon, which is a key raw material used in solar photovoltaic panels and semiconductors. When fully operational, the plant is expected to produce up to 100,000 tonnes of polysilicon every year. This output is enough to support the manufacturing of nearly 40 gigawatts of solar modules annually, giving Oman a strong position in the global renewable energy supply chain.

The current phase is a soft launch, with a formal inauguration planned for next month. The project uses advanced technology supplied by the Chinese company Shuangliang Hydrogen, which has provided critical equipment such as reduction furnaces and green hydrogen production systems. The manufacturing process uses metallurgical-grade silicon along with hydrogen produced through water electrolysis, aligning with cleaner production practices.

Environmental management is a key part of the facility’s design. The plant includes advanced systems to recycle gases and liquids used during production. These systems help reduce waste and ensure that emissions and by-products are treated safely, supporting Oman’s broader sustainability goals.

The project is backed by a mix of local and international partners. The Oman Investment Authority, through its Future Fund Oman, is a key supporter, along with the International Finance Corporation. Funding has also been provided by a group of regional and local banks. Indian solar manufacturer Waaree Solar is involved as a strategic partner and will act as an offtaker for the polysilicon produced at the facility.

Beyond its financial and industrial impact, the USP plant is expected to play an important role in connecting solar supply chains across Asia, Africa, and Europe. The location at Sohar Freezone gives the project strong logistical advantages for global exports.

The launch of this facility reflects Oman’s efforts to reduce its reliance on oil and gas revenues by building new industries linked to clean energy and advanced manufacturing. As production increases, the plant is expected to create jobs and encourage the growth of related high-tech industries in the region. Overall, the USP project represents a significant milestone in Oman’s plan to become a key player in the global energy transition and the semiconductor value chain.