Oman has granted two integrated green hydrogen projects in Duqm under its third auction round, through Hydrom, the national coordinator of its green hydrogen strategy, aiming for a total planned production capacity of around 121,000 tonnes of green hydrogen each year by 2032.
Revealed at COP31, the agreements signify another advancement in Oman's initiatives to develop its green hydrogen sector, diversify downstream output, and reinforce the commercial foundations of its energy transition. The initiatives will implement green ammonium nitrate production along with increased green ammonia capacity, expanding the nation's hydrogen-oriented industrial portfolio.
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Leveraging the most recent auction outcomes, Hydrom has now initiated its fourth auction round, offering an investment opportunity that links renewable energy and green hydrogen generation with the increasing electricity demands of data centres.
The initial contract was executed with a consortium that includes Oman's Petrogas E&P and Italy's Bio3Energy Srl. The second includes Indonesia's PLN Indonesia Power Renewables, Alawi Enterprises from Oman, and HBA Offshore International PTE based in Singapore.
The project granted to Petrogas E&P and Bio3Energy will bring green ammonium nitrate as a fresh downstream product to Oman's hydrogen portfolio, broadening production past green ammonia and focusing on uses in the fertiliser and mining industries.
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The initiative seeks to generate about 625,000 tonnes of green ammonium nitrate per year by 2032, backed by roughly 50,000 tonnes of green hydrogen production annually. It will employ 1.16 GW of renewable energy capacity over a 100-square-kilometre area. The contract also includes a possibility for future growth by reserving another 100 square kilometres of territory.
The second agreement will have PLN Indonesia Power Renewables, Alawi Enterprises, and HBA Offshore International PTE collaborate on an integrated facility for producing green hydrogen and ammonia across a 100-square-kilometre area in Duqm.
The initiative aims for a yearly output of roughly 400,000 tonnes of green ammonia for export by 2032. It will be backed by approximately 1.45 GW of solar generation capacity and 1 GW of electrolysis capacity. In conjunction with its recent investment announcements, Oman is set to launch its initial commercial-scale green hydrogen production in 2027.
The initial phase of ACME Group's green hydrogen and ammonia initiative in Duqm is currently being built, with production anticipated to start next year.
Hydrom is advancing the creation of collaborative hydrogen infrastructure to facilitate the sector's growth. Master planning and pre-FEED tasks have been finalized, and FEED studies are now in progress to facilitate the upcoming phases of infrastructure development.
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The recent awards and the initiation of Round 4 indicate Oman's comprehensive plan to establish a cohesive hydrogen sector, merging export-driven production with downstream manufacturing and new domestic energy uses.