Oman targets 3rd GH2 auction round by April-end
MUSCAT: The much-anticipated third round of Oman's auction of land blocks for large-scale, integrated green hydrogen projects is expected to be launched before the end of this month, a key representative of Hydrom – the orchestrator and master-planner of this sector – has revealed.
Rumaitha al Busaidi, Business and ICV Development Manager – Hydrom, said the third auction round would be modelled largely on the lines of the successful first two rounds, which have led to the award of eight land blocks to date, with a total green hydrogen production commitment of around 1 million tonnes per annum starting from 2030.
'It is confirmed that we will be going to the market with another round of auctions by the end of this month,' said Al Busaidi. 'The timeline is around 7 to 8 months usually, but that will be much more clear once we actually move to the market. It'll be divided into two phases – the RFQ stage, and then you have the RFP stage, as is usually the process. We're aiming to award the next round of projects hopefully by the first quarter of 2026.'
The official made the revelations in a presentation at the Oman Water Week 2025 forum, which concluded at Oman Convention and Exhibition Centre last week. Her talk focused on the Capacities, R&D and ICV aspects of Oman's green hydrogen ecosystem.
Significantly, Hydrom is also weighing a separate auction platform to help secure a market for green hydrogen for local industries and applications within Oman. 'We are exploring different forms of auctions to create and build the market (for green hydrogen) in Oman,' Rumaitha noted. '(This) will target specific industries that will be developing in Oman, like green steel, fertilizers and others. And we will also have a double-sided auction, which is more of a government support mechanism, where at the moment we know that the price of green hydrogen is quite high, so what can we do to bridge that price gap between the developer or the supplier and the one that requires the offtake of the green hydrogen. So these are things that we are still working on. We'll have more clarity by the end of the year.'
In addition to its principal role as sector orchestrator, Hydrom is also overseeing the roll-out of shared infrastructure – encompassing desalinated water, green electricity grids, hydrogen pipeline networks, and so on – to support the green hydrogen projects.
This shared infrastructure, Rumaitha said, lies at the heart of Oman's investment appeal to international green hydrogen developers. 'The shared infrastructure is a big element as to why you are having a lot of international players coming in. This is because we are taking on the risk along with the developer, while they're building the things they're really good at. We're also building things that we're really good at and maximizing value creation rather than just let the developer build their own desalination capacity, do their own pipelines and so on. So we are shouldering this risk in order for the industry to also grow together.'
Going forward, Hydrom also envisions a role for itself as the aggregator and shipper of green hydrogen, replicating the role wholly state-owned Integrated Gas Company (IGC) currently performs with regard to natural gas supply. That additional responsibility is foreseen around 2030, when the production of green hydrogen is set to become a commercial reality.
'We know that once production starts by 2030, there will be some green hydrogen production demand for Oman. So we are envisaging a role that we can incubate a process very similar to how IGC, the Integrated Gas Company, works where all the requests for green hydrogen demand comes to one centralized entity to be able to process and honour those requests once they come in,' she added.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Observer
5 days ago
- Observer
Green hydrogen: Treasure to global energy markets
As the global pursuit of carbon neutrality accelerates, green hydrogen is quickly emerging as the cornerstone of a cleaner energy future and Oman is uniquely positioned to lead the charge. Situated at the crossroads of Europe, Asia, and Africa, the Sultanate of Oman is not simply embracing another alternative fuel; it is shaping its role as a pivotal player in the energy systems of tomorrow. With abundant solar radiation, expansive wind corridors, promising government policies, and world-class port infrastructure, Oman offers an unrivaled combination of natural and logistical assets. While others contend with sluggish bureaucracy, Oman has enacted agile policies and rolled out attractive incentives that are already drawing serious investment. This proactive approach provides the country with a vital head start. But the implications go far beyond economic gains. In an era when energy independence equates to geopolitical influence, green hydrogen presents Oman with a chance to move from energy supplier to strategic architect on the global stage. Globally, green hydrogen momentum is building at unprecedented speed. The International Energy Agency (IEA) estimates that global electrolyser capacity could reach between 134 and 850 gigawatts by 2030, with up to 8 million tonnes of hydrogen produced annually. Germany has pledged €9 billion to establish 5 GW of domestic electrolyser capacity. Japan has earmarked $21 billion over 15 years in subsidies. Meanwhile, Australia's Western Renewable Energy Hub envisions up to 26 GW of combined solar and wind dedicated to green hydrogen and ammonia export. Saudi Arabia's $8.4 billion NEOM project plans to deliver 1.2 million tonnes of green ammonia annually by 2026 using 3.9 GW of renewable capacity. For Oman, this transition is not just about sustainability. It's a strategic leap one that can reshape the national economy and redefine the country's place in global energy geopolitics. With abundant solar radiation, expansive wind corridors, promising government policies, and world-class port infrastructure, Oman offers an unrivaled combination of natural and logistical assets. Oman, however, is not simply following this trend it is writing its own chapter. Under Vision 2040 and its National Energy Strategy, the country aims to generate 30% of its electricity from renewables by 2030. Established in 2022, Hydrogen Oman (Hydrom) oversees the licensing, policy frameworks, land auctions, and infrastructure required to scale up the hydrogen economy. By early 2024, Hydrom had signed six landmark agreements around the ports of Duqm and Salalah, partnering with major global firms such as BP, ACME, Uniper-DEME (Hyport Duqm), EDF-JPower-Yamna, ACTIS-Fortescue, Green Energy Oman, and Marubeni Samsung. These deals, which represent approximately 15 GW of planned renewable capacity, are expected to produce over 700,000 tonnes of green hydrogen and draw nearly $20 billion in investment. Time is of the essence. As countries advance toward 2050 net-zero commitments, Oman's natural endowment and control over key maritime routes position it to seize a narrowing window of opportunity. Green hydrogen's promise lies not only in its environmental credentials produced via renewable-powered electrolysis with zero emissions but in its remarkable versatility. Unlike grey hydrogen, which emits greenhouse gases, or blue hydrogen, which depends on still-unproven carbon capture technologies, green hydrogen has the unique ability to decarbonise hard-to-abate sectors like steel manufacturing, aviation, maritime shipping, road transport, fertiliser production and large-scale renewable energy storage. Among the standout projects is Hyport Duqm, a collaboration between OQ, Uniper, and DEME Group, which will use 1.3 GW of solar and wind to operate a 500 MW electrolyser system, generating 60,000 tonnes of green hydrogen per year, convertible into 330,000 tonnes of green ammonia. Phase one is set for 2026. Meanwhile, ACME's Duqm based facility, a $3.5 billion project powered by 3 GW of solar and 500 MW of wind, aims to deliver up to 900,000 tonnes of green ammonia annually. In Salalah, consortia including EDF/JPower/Yamna and ACTIS-Fortescue plan to install 4–4.5 GW of renewable capacity to produce between 175,000 and 200,000 tonnes of green hydrogen annually, with the goal of exporting one million tonnes of green ammonia. These initiatives are beginning to pay off. Oman is projected to claim 60% of the Middle East's green hydrogen exports by 2030, outpacing regional competitors like the UAE and Saudi Arabia. Beyond decarbonisation, this shift offers economic resilience. As oil and gas gradually decline in global relevance, hydrogen promises to diversify Oman's GDP, stabilise state revenues, and create an estimated 70,000 high-skill jobs, including 17,000 leadership roles, by 2050. Oman's integrated strategy sets it apart. Unlike nations struggling with fragmented regulations or isolated infrastructure, Oman offers a coordinated, investor-ready ecosystem led by Hydrom and supported by free-trade zones in Duqm and Salalah. Its hydrogen program matches or surpasses benchmark initiatives like Saudi Arabia's NEOM or Australia's Pilbara region not just in capacity but in execution. Now entering its implementation phase, Oman's hydrogen vision is rapidly becoming reality. What began as policy ambition is evolving into structural transformation. Green hydrogen is reinvigorating industry, attracting global alliances, and enhancing Oman's international profile. Guided by Vision 2040 and powered by its renewable wealth, Oman is no longer just entering the hydrogen race; it is helping define it.
Observer
11-06-2025
- Observer
Oman a prime location for e-ammonia production: Yamna
MUSCAT: The Sultanate of Oman's potential to become a regional powerhouse in e-ammonia production has been reaffirmed by a top executive at Yamna, a clean energy investment firm collaborating with major international players to develop a gigawatt-scale green hydrogen project in Dhofar Governorate. Abdelaziz Yatribi, CEO of UK-based Yamna, stated in a recent interview that Oman's natural, infrastructural, geostrategic, and regulatory advantages make it an ideal destination for e-ammonia investment. 'Oman offers exceptional solar and wind resources, resulting in one of the lowest levelised costs of electricity (LCOE) – a critical factor in green hydrogen and ammonia production. Additionally, the Omani government's proactive approach, particularly through Hydrogen Oman (Hydrom), provides a supportive framework for green hydrogen and its derivative projects,' Yatribi said in an interview featured in an in-house report of Eiffel Investment Group, a leading European third-party asset manager. Last year, Yamna, along with consortium partners EDF Group and J-POWER, was awarded a 341 km² land block in Dhofar Governorate to develop, build, own, and operate a large-scale green ammonia project with an annual production capacity of 1 million tonnes. The project will integrate approximately 4.5 GW of renewable energy capacity and a 2.5 GW electrolyser, supplying hydrogen to an ammonia plant to be established in the Salalah Free Zone. Yamna's strategy, according to Yatribi, centres on producing the world's most cost-competitive green molecules – hydrogen and ammonia – in locations where renewable resources are both abundant and economical. 'Ammonia serves as an efficient carrier for hydrogen, facilitating its transport to global markets. It is a well-established commodity with over a century of production and transportation history, which significantly reduces technology and infrastructure risks. By leveraging existing ammonia infrastructure, we can accelerate the global deployment of green hydrogen solutions, particularly in markets with decarbonisation imperatives and limited domestic access to competitively priced green molecules,' he explained. Traditionally used in fertilizer production and industrial processes, the demand for e-ammonia is expected to grow substantially over the next 5 to 10 years, Yatribi noted. This growth will also be driven by its emerging role as a hydrogen carrier and low-carbon maritime fuel. In countries like Japan and South Korea, government-backed initiatives support the use of e-ammonia in power generation and industrial applications. Likewise, increasing interest in ammonia as a marine fuel is prompting the development of stringent safety protocols, supported by successful bunkering trials and forthcoming guidelines from the International Maritime Organisation (IMO), he added. Yatribi also emphasised Yamna's commitment to delivering a global portfolio of export-oriented e-ammonia projects, currently planned in Brazil, India, Morocco, and Oman. 'We envision e-ammonia playing a central role in the global energy transition. Beyond replacing fossil-based ammonia in traditional uses, e-ammonia will serve as a key enabler for decarbonising hard-to-abate sectors, including power generation and maritime shipping,' he said, adding: 'With continued technological innovation and supportive policies, we believe e-ammonia will become a cornerstone of a sustainable, low-carbon future.'
Observer
02-06-2025
- Observer
Oman's liquid H2 corridor a model for global hydrogen trade
MUSCAT, JUNE 2 A landmark agreement signed recently by Oman to establish the world's first trade corridor for liquid hydrogen (H2), marks a pivotal step in consolidating the Sultanate's position as a global hub for green hydrogen production and export. This was the central message of a recent article by Attaqa, a Washington-based Arabic-language platform dedicated to energy news and analysis. Titled "Exporting Liquefied Hydrogen Represents a Qualitative Leap for Oman and a Promising Opportunity for Middle East Countries", the article summarizes the views of several international energy experts who see the agreement as a model for global hydrogen trade. The proposed Liquid Hydrogen Corridor will connect the Port of Duqm in Oman with the Port of Amsterdam in the Netherlands, enabling the transport of liquid hydrogen deeper into Europe via logistics hubs in Germany and beyond. Key players in this groundbreaking initiative include Hydrom—the master planner of Oman's green hydrogen sector—and OQ, the Sultanate's integrated global energy group. Oman's leadership in this transformative venture has earned international praise. Salah Mahdi, Global Director of Hydrogen at Chart Industries, a major player in hydrogen liquefaction and transport technologies, described the project as a "qualitative leap" that reflects a forward-thinking vision combining ambition and pragmatism. By taking a pioneering role in this initiative, Oman is demonstrating its intent to go beyond exploring hydrogen potential and instead develop a large-scale, integrated value chain. The country is leveraging not only its abundant renewable energy resources and strategic geographic location but also its growing partnerships with European nations, he said. 'If this project is implemented well—and initial signs are promising—this corridor could become a global model for intercontinental hydrogen trade,' Mahdi told Attaqa. He called Oman's decision to adopt liquid hydrogen a 'strategic choice,' noting that liquefied hydrogen, like LNG, can be transported in bulk over long distances. Mahdi highlighted the project's integrated system, which includes large-scale hydrogen production, advanced liquefaction, refrigerated container shipping, and regasification facilities in Europe. Such an ecosystem, he said, could serve as a clean energy artery linking the Middle East with Europe. Chart Industries, he said, is currently collaborating with a number of developers in the MENA region to produce and liquefy hydrogen locally for eventual export to Europe. He noted in this regard that, as a pioneer in this field, Oman would set standards and establish infrastructure models for other Arab countries to emulate. Matt Moran, Managing Director of Moran Innovation LLC, a leading player in hydrogen liquefaction, emphasized Oman's early leadership in the liquefied hydrogen sector. He cited the nation's abundant solar potential, low-cost land, trained workforce, existing gas infrastructure, and access to seawater and methane as significant advantages. He also stressed the importance of learning from other hydrogen export projects, such as Australia's shipments to Japan, and highlighted Germany and the Netherlands as natural trade partners due to their strong demand, infrastructure, and LNG ties. Frank Wouters, Chair of the Hydrogen Alliance for the Middle East and North Africa, noted that while liquefied hydrogen is gaining momentum, it's one of several viable transport methods—others include ammonia or liquid organic hydrogen carriers. Interest in liquefied hydrogen led to the recent creation of the Dii Liquid Hydrogen Taskforce (DLHTF) by Dii Desert Energy, a leading international public-private network focusing on green hydrogen. Wouters, who leads the taskforce, said its mission is to clarify the benefits and challenges of this emerging energy carrier.
