The Sultanate of Oman, which is represented by Hydrom – the national orchestrator when it comes to its green hydrogen strategy, made an announcement to award two integrated green hydrogen projects in Duqm in its third auction process, with a planned production merged capacity of roughly 121,000 of green hydrogen per year by 2032.
Declared during COP31, the contracts will broaden the green portfolio from Oman, highlighting green ammonium nitrate manufacturing and providing more green ammonia capacity, at a point when the global hydrogen demand is additionally reliant on the economic project and the establishment of stream markets. After the achievement of prior boards, Hydrom further announced its fourth-round auction, indicating a fresh opportunity for investment in renewable energy and green production with the increasing power needs of data centers.
The first was executed with a consortium extension of Petrogas E & P of Oman and Bio3Energy Srl of Italy, and the second was issued with a consortium bond of PLN Indonesia Power Renewables of Indonesia and Alawi Enterprises of Oman, as well as Singapore’s HBA Offshore International PTE.
According to the Managing Director of Hydrom, Eng. Abdulaziz Said Al Shidhani, “The development of international hydrogen will be driven by demand and commercial competitiveness, not production targets alone. For Oman, our priority is assured that projects remain competitive as these markets develop, supported by an investment framework that responds to market conditions and the infrastructure needed for large-scale production. At the same time, expanding green ammonia production and developing downstream industries and domestic applications is essential to long-term economic value for Oman, alongside our ambitions for hydrogen exports.”
He went on to further remark that “the successful conclusion of Round 3 is especially effective because it reflects listening to investors and responding to changing market conditions. ” We take the lessons from earlier auctions and translations into a more flexible and competitive offer. Two new consortia today we give further confidence in that approach, and our priority now is to support their progress towards investment decisions and delivery. With Round 4, we are the same market-led thinking application to a different opportunity. We see growing demand for reliable electricity from the digital economy, and we believe Oman can be together to bring its renewable resources and green hydrogen capabilities and to serve that market. Creating a draw at home alongside international markets will strengthen the commercial foundations of our hydrogen industry and open new opportunities for investment in Oman.”
The Petrogas E&P and Bio3Energy Srl project will bring green ammonium nitrate as a new entertainment item to the hydrogen portfolio of Oman, broadening hydrogen-based industrial manufacturing beyond merely green ammonia to fertilizer as well as various mining applications. The two integrated green hydrogen projects are expected to produce some 625,000 tonnes per annum of green ammonium nitrate by 2032, utilizing somewhere around 50,000 tonnes per annum of green hydrogen produced from 1.16 GW of renewable energy capacity throughout a 100-square-kilometer site. The agreement also provides for a possibility to expand with reservation of land for another 100 square kilometers in years to come.
As per the CEO of Petrogas Group, who spoke on the Consortium, Kingsuk Sen, “This agreement marks an important milestone in supporting Oman’s ambition to become a global leader in green hydrogen. We are proud to partner with Bio3energy, whose experience in renewable energy and clean technologies complements our capabilities and strengthens our ability to advance this project. We look forward to working closely with our consortium partners and Hydrogen Oman (Hydrom) to create sustainable, long-term value for Oman, in line with Vision Oman 2040 and the Sultanate of Oman’s commitment to achieve net-zero emissions by 2050.”
According to the second agreement, PLN Indonesia Power Renewables and Alawi Enterprises, as well as HBA Offshore International PTE, will build a unified green hydrogen and ammonia production plant in 100 square swamps. It will produce about 400,000 tons of green ammonia per year for export by 2032, using about 1.45 GW of solar power capacity as well as 1 GW of electrolysis capacity.
The President Director of PT PLN Indonesia Power Renewables, Hendry Asdayoka Putra, speaking on the Consortium, said, “We are honored to sign these agreements with Hydrom. Oman has set out one of the clearest green hydrogen frameworks in the world, and Duqm offers the solar wind resource, the port, and the industrial base to deliver it. Together with our partners HBA Offshore International and the Zawawi Group, one of Oman’s longest-established business groups, we are going to build Omani skills, Omani suppliers, and new industries in Dum. This project is a bridge between Indonesia and Oman in the transition, and we are committed to it for the long term.”
The two projects were Étigandes, which happens to be under a more adaptable and investor-focused structure, and Rounding, which is incurring lessons obtained from prior auctions and market input to bidder engagement and competitive advantage enhancement. The auction also allowed more entries in flatness bids in their integration projects in a land block of almost 300 square kilometers, with a minimum project area of 100 square kilometers, in addition to an additional 9-month bid preparation time frame. In response to market trends and changing global market dynamics, Hydrom additionally added a focus on fiscal incentives such as 90% extraction in land-to-recover fees development as well as relief throughout the Front-End Engineering Design – FEED phase bases in royalties throughout the years of first production along with corporate tax waivers for as long as ten years. These actions were intended to encourage the economics of projects at a preliminary stage, improve their economic viability, and allow progression toward final investment decisions.
Under Round 4, Dhofar is the location for the Green-Powered Data Center Hydrogen Auction, with investment opportunities in the cross-energy as well as digital infrastructure sectors. This auction will connect renewable energy and green hydrogen production with the need for a reliable power supply by data centers, with data centers being the anchor providers committing to project allocations, with data centers being the anchor providers committing to project allocations so as to support the creation of domestic hydrogen applications. Expressions of interest registration is currently available until February 2027.
The Director General for Sector Stimulations and Future Skills at the Ministry of Transport, Communications and Information Technology, Dr. Seema Al Kaabi, said that “Oman has established a base of now strong international ties, and we are working to expand the country’s capacity for large-scale AI and cloud computing operations under the umbrella of the Oman Digital Triangle. For data center investors, power availability, reliability, and long-term operating concessions are fundamental to decisions on where to establish these facilities. Our close cooperation with the Ministry of Energy and Minerals and Hydrom will allow us to address these requirements as part of a coordinated investment, support the development of green computing infrastructure, and support the next phase of Oman’s National Digital Economy Program. Provide hydrogen firming as an additional energy option for data centers in Oman, along with renewable energy and grid electricity, investors are offered more options to meet their energy needs through clean and sustainable sources.”
Hydrom is continuing to bring novel investment possibilities to market, while Oman intends to start off its procedure for the first commercial-scale green hydrogen production in 2027. ACME Group has begun the first phase of its green hydrogen and ammonia project in Duqm and expects to produce within the following year. Hydrom is additionally moving forward with the establishment of shared hydrogen facilities and has finished master planning and pre-FEED activities, with FEED evaluations now underway to assist with the next stages of development.