Oman signs an agreement for $20 billion of green hydrogen projects

Oman has signed binding commercial term sheets for six projects involving green hydrogen that will require investments of around $20 billion. The Hyport Duqm consortium, Green Energy Oman, ACME’s Green Hydrogen and Chemicals SPC, and the SalalaH2 consortium will all collaborate on developing the projects. More than 700,000 tonnes of green hydrogen are anticipated to be produced at the plants, which will be close to the ports in Salalah in the south and Duqm in central Oman. The amount of renewable energy needed for this will be around 15 GW.

The agreements were reached between the developers and Hydrogen Oman (Hydrom), a state-owned company that was established in the sultanate last year to promote the growth of the green hydrogen industry. As per the agreement, the companies have seven years to develop and construct the facilities and then operate the production sites for a period of 40 years after their commissioning.

Oman is offering two blocks in Duqm with a combined area of 320 sq km for green hydrogen projects in the first hydrogen auction. The bid submission deadline was March 15, 2023, and the successful bidders will be notified near the end of April, 2023. The request for qualification (RfQ) for the second phase of the auction is anticipated to be released in June 2023.