MUSCAT, Oman, Nov. 12, 2026 /PRNewswire/ — The Sultanate of Oman, represented by Hydrom, the national orchestrator of its green hydrogen strategy, has awarded two integrated green hydrogen projects in Duqm under its third auction round, with a combined planned production capacity of approximately 121,000 tonnes of green hydrogen annually by 2032. Announced during COP31, the agreements will expand Oman’s green hydrogen portfolio, introducing green ammonium nitrate production alongside additional green ammonia capacity, as the global hydrogen industry places greater emphasis on project economics and downstream markets. Building on the success of previous auction rounds, Hydrom also launched its fourth auction round, introducing a new investment opportunity linking renewable energy and green hydrogen production with the growing power requirements of data centres.
Under the first agreement, Oman’s Petrogas E&P and Italy’s Bio3Energy Srl will introduce green ammonium nitrate as a new downstream product in Oman, with applications in the fertiliser and mining sectors. Targeting 625,000 tonnes annually by 2032, the project will use approximately 50,000 tonnes of green hydrogen per year, produced from 1.16 GW of renewable energy capacity on a 100-square-kilometre site. The agreement includes a proposed reservation of another 100 square kilometres for future expansion.
Under the second agreement, Indonesia’s PLN Indonesia Power Renewables, Oman’s Alawi Enterprises and Singapore’s HBA Offshore International PTE will develop an integrated green hydrogen and ammonia project on 100 square kilometres. It targets 400,000 tonnes of green ammonia annually for export by 2032, using approximately 1.45 GW of solar generation capacity and 1 GW of electrolysis capacity.
Round 3 introduced a more flexible, investor-oriented framework informed by earlier auction experience and feedback from developers to enhance competitiveness and bidder participation. The auction allowed developers greater flexibility in defining their project footprints within a land block of up to 300 square kilometres, with a minimum project area of 100 square kilometres, alongside an extended nine-month bid preparation period. In response to its market sounding exercise and evolving global market dynamics, Hydrom also introduced targeted fiscal incentives, including a 90% reduction in land lease fees during development, potential further relief during the Front-End Engineering Design (FEED) phase, reductions in base royalties during the initial years of production and corporate tax exemptions of up to ten years. These measures were designed to support early-stage project economics, enhance commercial viability and facilitate progress towards final investment decisions.
In Round 4, Hydrom is introducing the Green-Powered Data Centre Hydrogen Auction in Dhofar, offering investment opportunities across the energy and digital infrastructure sectors. With data centres serving as anchor offtakers, the auction will link renewable energy and green hydrogen production to their requirements for reliable electricity supply, introducing a demand-led approach to project allocation that supports the development of domestic hydrogen applications. Registration for expressions of interest is now open until February 2027.
Bidders wishing to participate in Round 4 are encouraged to register via Hydrom’s official auction platform. Full registration guidelines are available at hydrom.om.
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