Oman has signed two new agreements to develop green hydrogen projects in the Special Economic Zone of Duqm. The goal of these projects is to produce 121,000 tons of green hydrogen annually by 2032, coinciding with the announcement of the start of the fourth round of bidding for green energy projects.
New Agreements and Project Goals
The first agreement was signed with a consortium of PetroGas and Bio 3 Energy, while the second agreement was concluded with a consortium including BLN Indonesia and Alawi Oman Projects and HPA Offshore International PTE from Singapore. The first project aims to produce 625,000 tons annually of green ammonium nitrogen by 2032, relying on 50,000 tons of green hydrogen annually and 1.16 gigawatts of renewable energy sources. In contrast, the second project focuses on producing 400,000 tons of green ammonia annually for export and is dependent on a solar power plant with a capacity of 1.45 gigawatts and electrolyzers with a capacity of 1 gigawatt.
Investment and Development Potentials
Abdulaziz bin Said Al-Shidhani, CEO of Hydrom, stated that these projects are being implemented with the aim of increasing the competitiveness and attractiveness of green hydrogen projects. He also noted that the fourth round of bidding seeks to leverage the rapid growth of the digital economy and highlights the connection between renewable energy projects and green hydrogen with the ongoing needs of artificial intelligence data centers.
In this new round, investment opportunities exist in Dhofar Governorate for the development of integrated renewable energy and green hydrogen projects. The electricity generated will be allocated to the needs of artificial intelligence data centers, and registration for investors will continue until February 2027.
Dr. Seema bint Saadi Al-Kaabi, Director General of the Department of Future Skills and Preservation at the Ministry of Transport and Communications, emphasized that Oman is striving to enhance its ability to attract investments in artificial intelligence and cloud computing using the "digital triangle." She stressed that renewable energy and green hydrogen will provide sustainable electricity for these projects.
Officials from the winning consortiums, legal factors, and existing infrastructure in Duqm, along with solar and wind energy resources and the logistical position of the region, were identified as key factors for the success and expansion of green hydrogen projects in the future.
Oman is expected to begin its first commercial production of green hydrogen in 2027. Meanwhile, Hydrom is developing shared infrastructure and preparing engineering studies for the future stages of this sector.
Through these projects, Oman is working to strengthen its position in global clean energy markets and expand industries related to green hydrogen while attracting new investments that support economic diversification and the goals of "Oman Vision 2040."
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