Thursday 12 / November / 2026
,Antalya: The Sultanate of Oman, represented by Hydrom, the national orchestrator of its green hydrogen strategy, has announced the award of two integrated green hydrogen projects in Duqm under its third auction round, with a combined planned production capacity of approximately 121,000 tonnes of green hydrogen annually by 2032.
Announced during COP31, the agreements will expand Oman's green hydrogen portfolio, introducing green ammonium nitrate production alongside additional green ammonia capacity, at a time when the global hydrogen industry is placing greater emphasis on project economics and the development of downstream markets. Building on the success of previous auction rounds, Hydrom also launched its fourth auction round, introducing a new investment opportunity linking renewable energy and green hydrogen production with the growing power requirements of data centres.
The first agreement was signed with a consortium comprising Petrogas E&P of Oman and Bio3Energy Srl of Italy, while the second was signed with a consortium comprising PLN Indonesia Power Renewables of Indonesia, Alawi Enterprises of Oman and HBA Offshore International PTE of Singapore.
Eng. Abdulaziz Said Al Shidhani, Managing Director of Hydrom, said: "The development of international hydrogen markets will be driven by demand and commercial competitiveness, not production targets alone. For Oman, our priority is to ensure 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 creating long-term economic value for Oman, alongside our ambitions for hydrogen exports."
Eng. Al Shidhani went on to explain, “The successful conclusion of Round 3 is particularly significant because it reflects our willingness to listen to investors and respond to changing market conditions. We took the lessons from earlier auctions and translated them into a more flexible and competitive offering. Welcoming two new consortia today gives us further confidence in that approach, and our priority now is to support their progress toward investment decisions and delivery.
He added, “With Round 4, we are applying the same market-led thinking to a different opportunity. We see growing demand for reliable electricity from the digital economy, and we believe Oman can bring together its renewable resources, green hydrogen capabilities and connectivity to serve that market. Creating demand at home alongside international markets will strengthen the commercial foundations of our hydrogen industry and open new opportunities for investment in Oman.”
The project with Petrogas E&P and Bio3Energy Srl will introduce green ammonium nitrate as a new downstream product in Oman's hydrogen portfolio, expanding hydrogen-based industrial production beyond green ammonia, with applications in the fertiliser and mining sectors. The project targets approximately 625,000 tonnes of green ammonium nitrate annually by 2032, supported by around 50,000 tonnes of green hydrogen produced each year using 1.16 GW of renewable energy capacity across a 100-square-kilometre site. The agreement also includes an expansion option through land reservation for an additional 100 square kilometres in the future.
Kingsuk Sen, CEO of Petrogas Group on behalf of the consortium, said: “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 own 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 Oman Vision 2040 and the Sultanate of Oman's commitment to achieving net-zero emissions by 2050.
Under the second agreement, PLN Indonesia Power Renewables, Alawi Enterprises and HBA Offshore International PTE will develop an integrated green hydrogen and ammonia production facility covering 100 square kilometres. The project targets annual production of around 400,000 tonnes of green ammonia for export by 2032, using approximately 1.45 GW of solar power generation capacity and 1 GW of electrolysis capacity.
Hendry Asdayoka Putra, President Director of PT PLN Indonesia Power Renewables, on behalf of the consortium, said: "We are honoured 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 and 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 aim to build Omani skills, Omani suppliers and new industries in Duqm. This project is a bridge between Indonesia and Oman in the energy transition, and we are committed to it for the long term."
The two projects were awarded under a more flexible and investor-oriented framework introduced in Round 3, incorporating lessons learned from previous auctions and market feedback to optimise bidder participation and enhance competitiveness.
The auction allowed developers greater flexibility in defining their project footprints within a land block of up to 300 square kilometres, with a minimum project area of 100 square kilometres, alongside an extended nine-month bid preparation period. In response to its market sounding exercise and evolving global market dynamics, Hydrom also introduced targeted fiscal incentives, including a 90% reduction in land lease fees during development, potential further relief during the Front-End Engineering Design (FEED) phase, reductions in base royalties during the initial years of production and corporate tax exemptions of up to ten years. These measures were designed to support early-stage project economics, enhance commercial viability and facilitate progress towards final investment decisions.
Under Round 4, Hydrom is introducing the Green-Powered Data Centre Hydrogen Auction in Dhofar, offering investment opportunities across the energy and digital infrastructure sectors. With data centres serving as anchor offtakers, the auction will link renewable energy and green hydrogen production to their requirements for reliable electricity supply, introducing a demand-led approach to project allocation that supports the development of domestic hydrogen applications. Registration for expressions of interest is now open until February 2027.
Dr. Seema Al Kaabi, Director General for Sector Stimulations and Future Skills at the Ministry of Transport, Communications and Information Technology, said: "Oman has established a strong base of international connectivity, and we are now working to expand the country's capacity to accommodate large-scale AI and cloud computing operations under the umbrella of Oman Digital Triangle. For data-centre investors, power availability, reliability and long-term operating costs 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 offering, supporting the development of green computing infrastructure and the next phase of Oman's National Digital Economy Program. Providing hydrogen firming as an additional energy option for data centres in Oman, along with renewable energy and grid electricity, offers investors more options to meet their energy needs through clean and sustainable sources.”
While Hydrom continues to bring new investment opportunities to market, Oman is preparing to commence its first commercial-scale green hydrogen production in 2027. Construction is underway on the first phase of ACME Group's green hydrogen and ammonia project in Duqm, with production expected to begin next year. In parallel, Hydrom is advancing the development of shared hydrogen infrastructure, having completed master planning and pre-FEED activities, with FEED studies now underway to support the next phases of project development.
