DUBAI—Oman has established a national hydrogen alliance to develop an industry for the production, transport and use of the fuel that Gulf states have been increasingly looking to as a business to meet the worldwide demand for clean fuels.

Oman’s alliance consists of 13 institutions from the public and private sectors, including government agencies, oil and gas operators, educational and research institutions and ports, state news agency ONA said on Aug. 12.

The project is part of Oman’s energy diversification aims within its Oman Vision 2040 economic transformation plan.

In May, Oman announced a consortium including state-owned oil firm OQ would develop a solar- and wind-energy powered project capable of producing millions of tonnes of zero-carbon green hydrogen per year.

So-called green hydrogen, created by splitting water into its two components using electricity from renewable energy sources, is increasingly viewed as a fuel to replace fossil fuels and their high carbon emissions.

Gulf oil-producing countries are trying to diversify their economies by creating new sectors and revenues, including through a big push in renewable energy.

Abu Dhabi plans to produce and export hydrogen as a fuel and Saudi Arabia is working on a $5 billion hydrogen project in the NEOM high-tech business zone.