The state-owned company overseeing Oman’s green hydrogen sector, Hydrom has announced new fiscal incentives designed to enhance the commercial viability of projects. The project will be awarded through the ongoing third green hydrogen auction round.
The measures represent a targeted response to a market sounding exercise conducted by Hydrom earlier this year and evolving global market dynamics. This reaffirms the country’s position as one of the world’s most structured and investment-ready hydrogen ecosystems.
Hydrom boosts green hydrogen project with new incentives that include a 90% reduction in land lease fees throughout the development phase potential for further relief during the Front-End Engineering Design (FEED) phase. Additionally, the significant reductions in base royalties in the initial years of production, and a Corporate Tax exemption for up to 10 years. Together, these measures are designed to support early-stage project economics, improve internal rates of return, and facilitate accelerated progress towards final investment decisions.
Eng. Abdulaziz Al Shidhani, Managing Director of Hydrom said. “The global hydrogen landscape is entering a phase of consolidation, with developers prioritizing jurisdictions that provide regulatory certainty, strong project economics, and credible offtake potential. The newly introduced incentives reflect Hydrom’s proactive approach to evolving market dynamics, reaffirming Oman’s position as a delivery-focused, investment-ready destination for large-scale hydrogen development.”
Designed with flexibility, transparency, and scalability at its core, Oman’s third auction round is progressing with strong momentum, offering a land block of up to 300 square kilometers in Duqm. It also invites proposals for projects covering a minimum of 100 square kilometers. Bidders have the flexibility in defining their project footprint within the block. This enables tailored configurations that align with individual development strategies and market requirements.
To date, almost 100 registrations have been received from major industry players and consortia across the green hydrogen value chain. This strong market response represents a sustained demand for structured, policy-supported green hydrogen development opportunities. Round 3 remains to attract serious first movers and institutional investors looking for scale-up operations in a competitive and structured environment.
The Statement of Qualification (SoQ) submission window remains open until 31 October 2025, and Hydrom encourages all interested parties to register and submit their documents via the dedicated platform. To support the formation of strong consortia in Round 3, Hydrom boosts green hydrogen project and will launch an updated consortium matchmaking list. It is an established tool that has successfully connected qualified participants seeking strategic project partnerships.
