Oman has invited international developers to bid for project sites on government-owned land as part of a new strategy aimed at achieving 1mn t/yr of green hydrogen production by 2030.

First-round auctions will open on 6 November, with site awards expected in 2023.

The auction process will be managed Hydrom, a new subsidiary of state-owned Energy Development Oman, which the government has set up to execute its hydrogen strategy.

“We at Hydrom look forward to working with international partners to build the future of energy,” says Firas al-Abduwani, managing director of Hydrom.

“The bid round we announced is the first of its kind globally and we are convinced it will help accelerate the development of the green hydrogen industry in Oman and globally.”

1mn t/yr – 2030 green hydrogen production target

Hydrom is regulated by the Ministry of Energy and Minerals, and its mandate includes facilitating the development of common infrastructure and associated hydrogen hubs, together with the Public Authority for Special Economic Zones and Free Zones.

Oman’s potential for green hydrogen production has already attracted huge interest from international developers. In May, Saudi government-affiliated Acwa Power and US industrial gases company Air Products signed a joint development agreement with Oman-owned OQ to establish a green hydrogen and ammonia production facility at Salalah, the sultanate’s southern industrial hub.

Acwa says the project is similar in scale to the $5bn Neom development in northwestern Saudi Arabia, which it is also developing with Air Products. Neom is expected ultimately to have a capacity of 1.2mn t/yr of green ammonia.

Separately, international developer Intercontinental Energy is partnering with Oman’s OQ and Enertech, a Kuwaiti government-backed clean energy investor and developer, on a project to produce 1.8mn t/yr of green hydrogen and up to 10mn t/yr of green ammonia in Oman.

In addition to its potential as a hydrogen exporter, Oman also wants the industry to help it reach its 2050 net-zero goal.

“Green hydrogen presents itself as a key vector that enables Oman to pursue its decarbonisation, economic and energy security objectives,” energy minister Salim al-Aufi says.

“With the abundant renewable energy resources which Oman is blessed with and with the appropriate structuring of the sector, Oman is positioned as one of the most attractive nations to produce green hydrogen competitively and at large scale.”

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Author: Stuart Penson