MUSCAT: Poland-based green hydrogen developer Hynfra is pursuing an innovative financing strategy to unlock billions of dollars for large-scale green hydrogen and ammonia projects, with its flagship venture in Oman expected to play a central role in the company's expansion across the Middle East and North Africa (MENA).
In an interview with Hydrogen Insight, Chief Executive Officer Tomoho Umeda said conventional project finance alone is unlikely to support the rapid scale-up of the emerging green hydrogen industry, prompting Hynfra to pursue a diversified funding model combining strategic investors, export credit agencies, development finance institutions, commercial lenders and industrial partners.
The approach is intended to reduce project risk while creating bankable investment structures capable of supporting multi-billion-dollar developments in regions with abundant renewable resources and strong export potential.
Among these, Oman has emerged as Hynfra's largest and most strategically important project. The company's Green Ammonia Oman (GAO) development near the Port of Duqm is designed to produce around 400,000 tonnes of renewable ammonia annually, supported by approximately 2.6 GW of renewable power and requiring an estimated investment of around $5.4 billion.
Located within the Special Economic Zone at Duqm (SEZAD), the project is intended primarily to produce green ammonia for export to international markets, particularly Europe, where demand is expected to accelerate as decarbonisation policies and renewable fuel mandates take effect. The site also offers opportunities to generate additional revenues through the sale of electricity, process steam and desalinated water to neighbouring industries, enhancing the project's commercial resilience.
Umeda said Hynfra's strategy is to develop an integrated industrial ecosystem rather than a stand-alone hydrogen plant, creating multiple revenue streams that improve long-term project economics and strengthen investor confidence. The company is also seeking to standardise project design and procurement across its portfolio to lower costs and shorten development timelines.
Oman occupies a prominent place in that strategy because of its exceptional solar and wind resources, established ammonia industry, export infrastructure and supportive regulatory environment. Hynfra views the Sultanate of Oman as one of the most competitive locations globally for producing renewable ammonia destined for European and Asian markets.
Significantly, the Oman project forms part of Hynfra's broader MENA pipeline, which also includes developments in Jordan and Mauritania. The company recently selected US-based electrolyser manufacturer Ohmium to support front-end engineering and design (FEED) work for the three projects, reflecting its strategy of working with multiple technology partners to reduce execution risk.
For Hynfra, the challenge extends beyond engineering. Umeda believes the next phase of the green hydrogen industry will depend on developing financing structures that attract long-term institutional capital, enabling large export-oriented projects such as Oman Green Ammonia to move from concept to construction as global demand for low-carbon fuels gathers momentum.
According to Hydrom’s latest published project information, its active portfolio comprises seven projects, four in Al Duqm and three in Salalah. Hynfra’s Green Ammonia Oman project is not currently listed among them.
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