Oman has awarded two integrated green hydrogen projects in its port town of Duqm with a combined planned annual production capacity of about 121,000t by 2032.
As part of the announcements, which were made during COP31 in Antalya, Türkiye, the country has also launched a fourth green hydrogen auction focusing on energy supplies for data centres.
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Oman advances its green hydrogen strategy through Hydrom, the national body responsible for coordinating hydrogen development.
The first agreement will see a collaboration between Oman’s Petrogas E&P and Italy’s Bio3Energy.
The partners plan to introduce green ammonium nitrate production in Oman for use in fertiliser and mining.
By 2032, the project aims to produce 625,000t of green ammonium nitrate per year, supplied by 50,000t of green hydrogen generated from 1.16GW of renewable energy on a 100km² site.
The deal also includes a reservation for an additional 100km² for potential future expansion.
The second agreement involves Oman’s Alawi Enterprises, Indonesia’s PLN Indonesia Power Renewables, and Singapore’s HBA Offshore International.
This consortium will develop a green hydrogen and ammonia project, targeting 400,000t of green ammonia for export by 2032.
The facility is expected to use around 1.45GW of solar generation and 1GW of electrolysis capacity on a 100km² area.
These new projects follow the third auction round, which introduced changes to the bidding process.
Hydrom offered developers more freedom to define project boundaries within land blocks of up to 300km², with a minimum project size of 100km².
The bid preparation period was also extended to nine months.
Additional fiscal incentives included a 90% reduction in land lease fees during development, with the potential for further reductions during the Front-End Engineering Design (FEED) phase. Lower base royalties in the initial production years and up to ten years of corporate tax exemption were also offered.
During COP31, Hydrom also launched the Green-Powered Data Centre Hydrogen Auction in Dhofar as part of the fourth auction round.
The new scheme seeks to link renewable energy and green hydrogen production with data centres’ power needs, moving to a demand-led allocation model designed to promote domestic hydrogen use.
Registration for expressions of interest in the fourth round is open until February 2027.
Recently, Indonesia and Norway signed a Mitigation Outcome Purchase Agreement (MOPA) during COP31. The agreement is Indonesia’s first MOPA intended to implement Article 6.2 of the Paris Agreement.
