Tenaris Green Hydrogen Infrastructure, 1 Oman Project with Hydrogen Systems, $1.37 B Storage Market (2025)
Tenaris Green Hydrogen Strategy, 1 Oman Project Amidst $7 B Cancellations
In 2025, Tenaris executed a strategic pivot to become a critical infrastructure supplier for the green hydrogen economy, consciously avoiding the high-risk production segment to focus on providing essential components for storage and transport. This “picks and shovels” approach insulates the company from the volatility that led to over $7 billion in hydrogen project cancellations during the year, positioning it to capture value from the sector’s inevitable need for robust logistical solutions.
- Before 2025, Tenaris’s engagement in the hydrogen sector was primarily limited to internal research, development, and adapting its legacy oil and gas product portfolio.
- The company’s strategy materialized in October 2025 with the successful commercial delivery of its proprietary THera™ hydrogen storage system to a green hydrogen refueling station project in Oman, marking its first major sale in the sector.
- This strategic entry occurred during a market correction where high production costs ($4-$7/kg for green hydrogen) and insufficient incentives forced many developers to cancel or postpone large-scale production facilities.
- By focusing on high-pressure containment and transport solutions, Tenaris addresses a primary bottleneck for the entire hydrogen value chain, establishing a durable market position as an essential technology enabler.
Hydrogen Pipeline Market Projected for Strong Growth
This chart’s projection of strong growth in the hydrogen pipeline market provides the strategic context for Tenaris’s focus on green hydrogen, justifying its investments despite broader industry project cancellations.
(Source: Global Market Insights)
$7 B+ Cancellations, Tenaris Targeted CAPEX Strategy
While the broader hydrogen production market faced a “reality check” in 2025 with widespread project cancellations, Tenaris implemented a calculated investment strategy that prioritized internal capabilities and product development over speculative, large-scale equity investments in hydrogen projects.
- In its April 2025 Sustainability Statement, Tenaris confirmed an increased capital investment directed toward its decarbonization strategy, which funds the manufacturing and R&D for low-carbon technologies, including its hydrogen product lines.
- This measured approach contrasts sharply with the challenges faced by hydrogen producers, who rely on uncertain government subsidies like the U.S. $3/kg 45 V tax credit to compete with cheaper grey hydrogen ($1-$3/kg).
- Tenaris’s investments are aimed at capturing a share of the growing hydrogen infrastructure market, specifically targeting the hydrogen storage tank segment, valued at $1.37 billion in 2025, and the hydrogen pipeline market, valued at $5.1 billion.
Oil & Gas Pipe Market to Surpass $111B
Illustrating the scale of Tenaris’s traditional business, this chart shows the vast size of the oil and gas pipe market. This provides context for the company’s targeted CAPEX strategy, which involves pivoting resources from this established base to the emerging hydrogen sector.
(Source: Persistence Market Research)
Table: Tenaris Investment Strategy vs. Market Headwinds
| Entity / Trend | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Tenaris | April 2025 | Confirmed increased capital investment in its decarbonization strategy. This funds the development and manufacturing of low-carbon solutions, including the THera™ hydrogen storage system and hydrogen-compatible pipes. | Tenaris |
| Hydrogen Market | 2025 | Over $7 billion in planned hydrogen projects were cancelled globally due to high production costs and insufficient incentives, highlighting the risk of direct investment in production. | Latitude Media |
Tenaris 1 Key Partnership with Hydrogen Systems in Oman (2025)
Tenaris’s partnership strategy in 2025 was narrowly focused on a single, high-impact collaboration with technology developer Hydrogen Systems, a move designed to achieve commercial validation for its new hydrogen storage technology in a real-world application.
- The partnership’s primary achievement was the October 2025 delivery of the Tenaris THera™ system, which provides the high-pressure storage for Oman’s first green hydrogen refueling station.
- This collaboration served as the essential proof-of-concept for Tenaris, creating a critical commercial reference that demonstrates the technology’s readiness for the market.
- By partnering with a project developer, Tenaris acted as a pure-play technology supplier, avoiding entanglement in the complexities of project financing and operation while establishing a key relationship in the growing Middle Eastern hydrogen market.
Hydrogen Storage Market Share by Pressure in 2025
The chart’s projection of hydrogen storage market share by technology for 2025 directly complements the section’s focus on a key partnership with Hydrogen Systems in Oman, also set for 2025, by providing relevant technological context.
(Source: Global Market Insights)
Table: Tenaris 2025 Hydrogen Partnerships
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Hydrogen Systems | October 2025 | Tenaris supplied its THera™ high-pressure hydrogen storage system to Hydrogen Systems for Oman’s first green hydrogen refueling station. The project validates Tenaris’s technology and provides a commercial entry into the hydrogen infrastructure market. | Tenaris |
| Snam (Market Context) | January 2025 | Major energy transport company Snam announced its strategic plan including an Mo U for developing the green hydrogen value chain. This signals a large future market for infrastructure components supplied by companies like Tenaris. | Snam |
Middle East Entry, Tenaris Global Hydrogen Infrastructure Ambitions
In 2025, Tenaris established its first commercial foothold for green hydrogen in the Middle East, a strategic choice that targets a region with strong government backing and ambitions to become a leading global hydrogen exporter.
- Prior to 2025, Tenaris’s energy transition activities were not specifically focused on hydrogen projects in any single geography, with R&D spread across its global footprint.
- The successful delivery for the Oman refueling station project marks a deliberate and successful market entry into the Middle East, positioning Tenaris as an early infrastructure partner in the region.
- The company’s presentation of its enhanced portfolio for offshore pipelines at the March 2025 Subsea Tieback Forum signals a broader ambition to supply the critical transport infrastructure connecting future production hubs, like those in the Middle East, with demand centers in Europe and Asia.
- This initial success in Oman provides a template for expansion into other key markets, including North America and Europe, where significant government-backed hydrogen backbone projects are in development.
Hydrogen Storage & Transport Market Nears $20B
This chart quantifies the significant scale of the current hydrogen storage and transport market, establishing the multi-billion dollar opportunity that underpins Tenaris’s global infrastructure ambitions and its strategic entry into the Middle East.
(Source: Global Market Insights)
Technology Validation, Tenaris THera™ System Achieves Commercial Scale
Tenaris’s hydrogen storage technology achieved full commercial maturity in 2025, progressing from the development and qualification stage to a successful field deployment that validated its performance in an operational environment.
- In the years leading up to 2025, Tenaris focused on the foundational materials science and testing required to qualify its steel products for the unique challenges of high-pressure hydrogen containment, which causes embrittlement in standard materials.
- The October 2025 delivery of the THera™ storage system to a commercial refueling project in Oman confirms its status at Technology Readiness Level 9 (TRL 9), the highest level of maturity.
- This achievement provides Tenaris with a significant first-mover advantage, as it now possesses a market-ready, proven product while many competitors remain in the pilot or demonstration phase.
- Further, by showcasing its developing portfolio for hydrogen-ready offshore pipelines in March 2025, Tenaris demonstrated it is already working on solutions for the next phase of hydrogen infrastructure.
Onshore Pipelines Dominate Hydrogen Market
As Tenaris validates its THera™ system, this chart is relevant by showing that onshore pipelines are the dominant segment of the hydrogen market, highlighting the strategic importance and target application for this new commercial-scale technology.
(Source: Global Market Insights)
SWOT Analysis, Tenaris Green Hydrogen Market Position
Tenaris’s 2025 activities successfully leveraged its core manufacturing strengths to enter the hydrogen market, validating its technology but also highlighting the need to scale quickly to capitalize on the opportunity and defend against competition.
Hydrogen Pipeline Market Forecasts Explosive Growth
This forecast of explosive market growth perfectly represents the ‘Opportunity’ component of a SWOT analysis, highlighting the compelling external market factor that validates Tenaris’s strategic position and investment in the green hydrogen sector.
(Source: Global Market Insights)
Table: SWOT Analysis for Tenaris Green Hydrogen Initiatives (2025)
| SWOT Category | 2021 – 2024 | 2025 | What Changed / Validated |
|---|---|---|---|
| Strengths | Core competency in metallurgy and high-pressure pipe manufacturing for oil and gas. | Launched proprietary THera™ hydrogen storage system and an enhanced portfolio for offshore pipelines. | The company successfully translated its materials science expertise into a commercially viable product for a new energy sector. |
| Weaknesses | No commercial track record or deployed projects in the green hydrogen sector. | Secured and completed the first commercial project (Oman), but the hydrogen business line remains nascent and a small part of overall revenue. | The first sale validates the technology but also underscores the challenge of scaling a new business line from a single project. |
| Opportunities | The green hydrogen market was projected to grow, with a recognized need for storage and transport infrastructure. | Market for hydrogen pipelines and storage is projected to grow to $5.1 B and $1.37 B respectively in 2025, with strong long-term CAGRs. | The “picks and shovels” strategy was validated as the production market faced turmoil, confirming a durable need for infrastructure providers. |
| Threats | Risk that the hydrogen market would not scale, or that existing infrastructure could be repurposed, reducing demand for new products. | Over $7 billion in hydrogen production projects were cancelled, threatening the customer base for infrastructure suppliers. Competition from other industrial players is emerging. | The threat shifted from market non-existence to market volatility. Tenaris is reliant on its customers’ projects securing financing and moving forward. |
Future Outlook, Tenaris Next Moves in Hydrogen Pipelines and Storage
The next 18 months are crucial for Tenaris to leverage its 2025 commercial entry into a sustained deal pipeline, converting its first-mover advantage in specialized storage into a broader role as a foundational supplier for global hydrogen infrastructure.
- The primary signal to watch is a follow-on sale or new purchase order for the THera™ storage system, particularly from a project in a different geography like Europe or North America, which would confirm broader market acceptance.
- A second key indicator will be the official launch and certification of specific pipeline products designed for 100% hydrogen transport, followed by a pilot project or initial supply agreement for a planned hydrogen backbone.
- Monitor for announcements of formal strategic partnerships with major hydrogen developers (e.g., RWE, Total Energies, or developers of hubs like NEOM) to become a preferred supplier of infrastructure components.
- An important internal milestone would be the adoption of green hydrogen in Tenaris’s own steelmaking processes at its direct reduced iron (DRI) plants, creating a circular, internal market for its technology.
Hydrogen Pipeline Market to Quadruple by 2035
This chart’s specific forecast that the hydrogen pipeline market will quadruple by 2035 directly supports the ‘Future Outlook’ section by quantifying the long-term growth potential that informs Tenaris’s next strategic moves in pipelines.
(Source: Research Nester)
The questions your competitors are already asking
This report covers one angle of Tenaris’s commercial entry into the green hydrogen infrastructure market. The questions that matter most depend on your work.
- Which companies are gaining ground in the green hydrogen infrastructure market, and which are losing ground in the production segment?
- Is Tenaris a good investment at this stage of the hydrogen market correction?
- Tenaris activities in Oman. Is the refueling station project progressing from pilot to wider deployment?
- What are the opportunities for high-pressure containment solutions in the green hydrogen transport and storage market?
This report does not answer these. Enki Brief Pro does.
Your question, your angle, your framework. SWOT, PESTL, scenario modelling. The same niche depth, built around the decision your work actually depends on.
