BUSINESS REPORTER
ANTALYA: The Sultanate of Oman signed on November 12 two agreements to develop green hydrogen projects in Duqm, with a targeted annual production capacity of 121,000 tonnes by 2032. Additionally, during its participation in COP31 in the Turkish city of Antalya, Oman launched the fourth round of public tenders for green energy projects dedicated to powering artificial intelligence (AI) data centers.
The first agreement was signed with a consortium comprising the Omani firm Petrogas E&P and the Italian company Bio3 Energy SRL. The second agreement was signed with a consortium consisting of PLN Indonesia Renewables, the Omani company Alawi Enterprises, and the Singaporean firm HBA Offshore International Pte.
The first project aims to produce approximately 625,000 tonnes of green ammonium nitrate annually by 2032, utilizing about 50,000 tonnes of green hydrogen per year and 1.16 gigawatts (GW) of renewable energy capacity. The second project involves the production of approximately 400,000 tonnes of green ammonia annually for export, utilizing 1.45 GW of solar energy capacity and 1 GW of electrolyzer capacity.
Eng Abdulaziz bin Said Al-Shidhani, Managing Director of Hydrom, stated that the awarding of the two projects follows a more flexible and competitive investment framework, which incorporates lessons learned from previous rounds and feedback from investors. He emphasized the ongoing commitment to enhancing the commercial viability of these projects, as well as developing downstream industries and local applications for green hydrogen.
He added that the fourth round aims to capitalize on the rapid growth of the digital economy and the rising demand for electricity by linking renewable energy and green hydrogen projects to the needs of artificial intelligence (AI) data centers. This approach is intended to bolster local demand for green hydrogen while creating new investment opportunities.
The fourth round includes an investment opportunity in the Dhofar Governorate for the development of integrated renewable energy and green hydrogen projects, with data centers serving as primary off-takers for the electricity generated. Registration is now open for interested investors until February 2027.
For her part, Dr Seema bint Saadi Al-Kaabi, Director General of the Sector Stimulation and Future Skills Directorate at the Ministry of Transport, Communications and Information Technology, explained that the Sultanate of Oman is leveraging its international connectivity—through the "Digital Triangle" initiative—to enhance its capacity to host AI and cloud computing projects. She highlighted the importance of providing reliable and sustainable electricity supplies for these projects, noting the potential for green hydrogen to contribute to their operational stability.
Kengsook Sun, CEO of the Petrogas Group, emphasized that the agreement marks a significant milestone in supporting the Sultanate of Oman’s aspirations to become a global leader in green hydrogen. He expressed his anticipation for working closely with partners and Hydrogen Oman (Hydrom) to create sustainable, long-term value for the Sultanate, in alignment with the goals of "Oman Vision 2040" and the nation’s commitment to achieving net-zero carbon emissions by 2050.
Hendri Asdayoka Putra, CEO of PLN Indonesia Renewables, stated that the Sultanate of Oman has established one of the world’s clearest regulatory frameworks for the development of green hydrogen projects. He highlighted the attractive advantages offered by the Special Economic Zone at Duqm (SEZAD) for the implementation of such projects, including an abundance of solar and wind energy resources, as well as integrated port facilities and industrial infrastructure.
The consortium, in collaboration with its partners—HBA Offshore International and the Zawawi Group—affirmed its commitment to leveraging these advantages to upskill the national workforce, enhance local content, increase the participation of Omani suppliers, and develop new industries in Duqm.
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