Oman launches study for large-scale hydrogen-to-power project

MUSCAT: In a move that could signal a significant evolution in Oman’s energy transition strategy, Nama Power and Water Procurement Company (Nama PWP) has issued a tender seeking techno-economic consultancy services for the development of a large-scale power generation project fuelled by green hydrogen.
The tender calls for the appointment of a consultant to undertake an initial assessment for a new independent power project (IPP) capable of operating on up to 100 per cent hydrogen, with an indicative generation capacity in the range of 800 to 1,000 megawatts. The study will evaluate the technical feasibility, cost structures, and potential deployment pathways for integrating hydrogen-based generation into Oman’s national grid.
Significantly, Nama PWP’s move represents one of the first concrete steps by a Gulf utility off-taker to formally assess hydrogen-to-power at utility scale - an area that has so far remained largely conceptual across the region.
The initiative comes against the backdrop of Oman’s ambitious green hydrogen programme, led by Hydrom, which has focused primarily on producing hydrogen for export and industrial use. Traditionally, hydrogen has been viewed as an energy carrier rather than a direct input for domestic electricity generation, due to efficiency losses associated with converting it back into power, say experts.
However, growing renewable energy penetration - particularly solar and wind - has prompted utilities worldwide to explore hydrogen as a long-duration energy storage medium and a potential clean fuel for dispatchable power. In Oman’s case, where renewable capacity is expected to expand significantly under Oman Vision 2040, hydrogen could offer a pathway to balance intermittency while reducing reliance on natural gas.
According to market experts, the study is expected to examine whether hydrogen-fired generation can be economically competitive with existing gas-based plants, as well as the infrastructure requirements for storage, transport, and fuel supply. It will also assess integration challenges, including grid stability and dispatch dynamics, particularly in a system that is progressively incorporating variable renewable energy sources.
Regionally, the proposed project stands out as a potentially pioneering development. While several Gulf countries have announced hydrogen strategies, most have prioritised exports -particularly in the form of green ammonia - over domestic power applications. A successful hydrogen-to-power project in Oman could therefore position the Sultanate as an early mover in this emerging segment, with implications for regional energy markets.
At the same time, the initiative raises important policy considerations. “Current regulatory and planning frameworks in Oman - overseen by the Authority for Public Services Regulation and the Ministry of Energy and Minerals - do not explicitly provide for large-scale, grid-connected hydrogen-fired power generation. Should the study demonstrate viability, it may necessitate updates to procurement strategies, tariff structures, and fuel supply frameworks to accommodate hydrogen as a new generation fuel,” an industry observer noted.
The deadline for the submission of proposals for techno-economic consultancy services is June 21, 2026.