Sultanate of Oman Signs Two Agreements for Green Hydrogen Projects

The Sultanate of Oman today signed two development agreements for green hydrogen projects in Duqm with a targeted production capacity of 121,000 tons annually by 2032. It also launched the 4th round of public auctions for green energy projects intended to supply electricity to AI data centers during its participation in "COP 31" in Antalya, Turkey.

The first agreement was signed with a consortium comprising the Omani company "Petrogas E&P" and the Italian "Bio3 Energy Srl." The second agreement was signed with a consortium consisting of "PLN Indonesia Power Renewable Energy," Omani Alawi Projects, and Singaporean "HBA Offshore International Pte."

The first project aims to produce about 625,000 tons of green ammonium nitrate annually by 2032, using about 50,000 tons of green hydrogen annually and renewable energy sources with a capacity of 1.16 gigawatts. The second project involves producing about 400,000 tons of green ammonia annually for export, using solar power with a capacity of 1.45 gigawatts and electrolyzers with a capacity of 1 gigawatt.

Engineer Abdulaziz bin Said Al Shidhani, Director General of Hydrom, stated that the awarding of the two projects followed a more flexible and competitive investment framework, benefiting from the experiences of previous rounds and investor feedback. He emphasized the continued work to enhance the commercial viability of projects and develop downstream industries and local uses for green hydrogen.

He added that the fourth round aims to leverage the rapid growth of the digital economy and the increasing demand for electricity by linking renewable energy and green hydrogen projects with the needs of artificial intelligence data centers, thereby supporting the development of local demand for green hydrogen and providing new investment opportunities.

The fourth round includes offering an investment opportunity in the Dhofar Governorate to develop integrated renewable energy and green hydrogen projects, with data centers being the main buyers of the produced electricity. Registration for interested investors is open until February 2027.

For her part, Dr. Sima bint Saadi bin Nasser Al Kaabi, Director General of the Directorate General for Sector Stimulation and Future Skills at the Ministry of Transport, Communications and Information Technology, explained that the Sultanate of Oman is working to leverage its international connectivity through the "Digital Triangle" project to enhance its ability to host artificial intelligence and cloud computing projects. She highlighted the importance of providing reliable and sustainable electricity supplies for these projects and the potential to use green hydrogen to enhance their stability.

Kingsuk Sen, CEO of Petrogas Group, affirmed that the agreement represents an important milestone in supporting the Sultanate of Oman's aspirations to become a global leader in green hydrogen. He expressed his eagerness to work closely with partners and Hydrogen Oman "Hydrom" to achieve sustainable, long-term value for the Sultanate of Oman, in line with the objectives of "Oman Vision 2040" and its commitment to achieving carbon neutrality by 2050.

For his part, Hendry Asdayuka Putra, CEO of "PLN Indonesia Power Renewable Energy," said that the Sultanate of Oman has established one of the clearest regulatory frameworks for developing green hydrogen projects globally. He pointed to the attractive features of the Special Economic Zone at Duqm that support the implementation of these projects, including abundant solar and wind energy resources, and integrated ports and industrial infrastructure.

He affirmed the consortium's determination, in cooperation with its partners at "HBA Offshore International" and the Zawawi Group, to leverage these assets to qualify national talent, enhance local content and the participation of Omani suppliers, and develop new industries in Duqm, opening broader prospects for bilateral cooperation between the Sultanate of Oman and the Republic of Indonesia in the field of energy transition.

The Sultanate of Oman is expected to begin commercial production of green hydrogen for the first time in 2027, with construction continuing on the first phase of the ACME Group's project to produce green hydrogen and ammonia in Duqm. Meanwhile, Hydrom has completed the master plan for the sector's common infrastructure, and preliminary engineering design studies are ongoing to support the next stages of project development.

Through these projects, the Sultanate of Oman seeks to enhance its position in the green hydrogen sector, expand related industries, support economic diversification, attract investments, and develop the use of clean energy both locally and in global markets.