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Oman Advances Its Green Hydrogen Strategy

In a significant move toward establishing itself as a global leader in green hydrogen production, the Sultanate of Oman has initiated its third auction round for green hydrogen projects in Duqm. This ambitious step is part of Oman’s broader strategy to create a robust hydrogen economy, positioning itself as a major hub for production and export on the international stage.

Organized by Hydrom, the latest auction offers qualified developers the chance to engage in Oman’s rapidly evolving hydrogen landscape. The auction is built on the successes and lessons derived from previous rounds, ensuring a more optimized and competitive process across the board. A substantial land area of up to 300 square kilometers has been designated for this auction, with proposals being invited for projects not less than 100 square kilometers in size.

Flexible Project Proposals

One of the standout features of this auction is the flexibility it offers bidders in designing their project footprints. This adaptability empowers developers to align their projects with individual strategies and market demands, fostering innovative solutions tailored to the unique characteristics of the Duqm region.

Moreover, the extended timeframe—nine months for project preparation, from the Request for Qualification (RFQ) announcement to the bid submission deadline—grants developers ample time for meticulous planning and collaboration, thereby increasing the likelihood of successful project execution. Bidders will also have the opportunity to explore selling surplus renewable electricity to the national grid, subject to regulatory approvals, further augmenting the economic viability and integration of their projects into Oman’s energy transition framework.

Strategic Advantages in Oman's Hydrogen Ecosystem

What sets Oman apart in this competitive arena are its numerous strategic advantages. The country provides access to common-use infrastructure and a stable regulatory environment, crucial for fostering investor confidence. Notably, Oman is strategically located near key markets in Europe and Asia, enhancing export opportunities for hydrogen produced within its borders.

Oman's commitment to a comprehensive energy transition includes the establishment of a dedicated 2,000-kilometer hydrogen pipeline. Further elevating its international status, Oman is also set to develop the world’s first liquid hydrogen export corridor, directly linking it to the Netherlands and Germany, acting as a conduit for future green energy supplies to Europe.

Previous Auction Successes

The planned auction follows two previous successful rounds, which have already resulted in the awarding of eight large-scale green hydrogen projects in the regions of Duqm and Dhofar. These initiatives alone have attracted over USD 49 billion in investment, targeting a combined production capacity of more than 1 million tons of green hydrogen annually by 2030. The implemented projects are powered by over 30 GW of renewable energy, solidifying Oman’s status as one of the most advanced hydrogen ecosystems worldwide.

The third round's auction process commenced with the release of the RFQ and qualified bidders are expected to submit their proposals by early 2026, with awards likely to follow soon after. Interested parties are encouraged to seek additional information and details about the auction process at www.hydrom.om.

This strategic initiative demonstrates Oman’s commitment to pioneering green energy solutions and fostering a sustainable future, firmly placing it on the global stage for green hydrogen production and export.