Oman Announces Major Green Hydrogen Projects and Auction at COP31

Duqm:Antalya The Sultanate of Oman, through its national green hydrogen strategy orchestrator Hydrom, has unveiled two significant integrated green hydrogen projects in Duqm. These projects, part of the third auction round, are expected to produce approximately 121,000 tonnes of green hydrogen annually by 2032.

According to Oman News Agency, this announcement was made during COP31, highlighting Oman's ongoing expansion in the green hydrogen sector. The new projects introduce green ammonium nitrate production and additional green ammonia capacity. Building on previous successes, Hydrom has also launched a fourth auction round, presenting an investment opportunity that links renewable energy with the power needs of data centres.

The first agreement involves a consortium of Petrogas E and P from Oman and Italy's Bio3Energy Srl. The second agreement includes PLN Indonesia Power Renewables, Oman's Alawi Enterprises, and Singapore's HBA Offshore International PTE. Both projects aim to bolster Oman's green hydrogen and ammonia production capabilities, with substantial production targets set for 2032.

Eng. Abdulaziz Said Al Shidhani, Managing Director of Hydrom, emphasized the importance of competitive projects driven by market demand and commercial viability. He stated that expanding Oman's green ammonia production and developing downstream industries are crucial for creating long-term economic value.

The first project plans to produce 625,000 tonnes of green ammonium nitrate annually, supported by 50,000 tonnes of green hydrogen using 1.16 GW of renewable energy. The second project targets 400,000 tonnes of green ammonia annually for export, utilizing 1.45 GW of solar power and 1 GW of electrolysis capacity.

These projects were awarded under a new framework that offers developers flexibility in project design and includes fiscal incentives to improve economic viability. The fourth auction round introduces the Green-Powered Data Centre Hydrogen Auction in Dhofar, linking renewable energy and green hydrogen production to data centres' electricity needs.

Dr. Seema Al Kaabi from the Ministry of Transport, Communications and Information Technology highlighted Oman's efforts to support the development of green computing infrastructure, aligning with the National Digital Economy Program.

As Oman progresses with new investment opportunities, the country is preparing for its first commercial-scale green hydrogen production in 2027, with construction underway on ACME Group's project in Duqm. Hydrom is also advancing shared hydrogen infrastructure development to support future phases.