Muscat, Oman, November 12, 2026 / PRNewswire / -- The Sultanate of Oman, represented by its national coordinating body for the Green Hydrogen Strategy, Hydrom, has awarded contracts for two integrated green hydrogen projects in Duqm during the third round of auctions. These projects are planned to have a combined annual production capacity of approximately 121,000 tons of green hydrogen, with a goal of achieving this by 2032. The agreement was announced on COP31, and it will expand Oman's portfolio of green hydrogen projects. At a time when the global hydrogen energy industry is placing increasing emphasis on project economics and downstream markets, it also aims to introduce green ammonium nitrate production and increase the capacity for green ammonia production. Building on the success of previous rounds of auctions, Hydrom has launched a fourth round of auctions, offering a new investment opportunity that connects renewable energy and green hydrogen production with the growing electricity demand of data centers.
According to the first agreement, Petrogas E &P from Oman and Bio3Energy Srl from Italy will introduce a new downstream product, green ammonium nitrate, in Oman for use in the fertilizer and mining industries. The project aims to produce 625,000 tons annually by 2032, with a planned annual consumption of about 50,000 tons of green hydrogen. It will require approximately 1.16 gigawatts of renewable energy capacity and cover an area of 100 square kilometers. The agreement also includes a suggestion to reserve an additional 100 square kilometers of land for future expansion.
According to the second agreement, PLN Indonesia Power Renewables from Indonesia, Alawi Enterprises from Oman, and HBA Offshore International PTE from Singapore will develop an integrated green hydrogen and ammonia project on 100 square kilometers of land. The project aims to export 400,000 tons of green ammonia per year by 2032 and plans to utilize approximately 1.45 gigawatts of solar power generation capacity and 1 gigawatt of electrolysis capacity.
The third round of auctions introduced a more flexible and investor-oriented framework, which drew on previous auction experiences and feedback from developers. The aim was to enhance competitiveness and bidding participation. This time, developers were allowed to define the scope of their projects more flexibly within land parcels of up to 300 square kilometers, with a minimum project area of 100 square kilometers. Additionally, the preparation period for bidding was extended to 9 months. In response to market research results and the constantly changing global market dynamics, Hydrom also introduced targeted fiscal incentives, including a 90% reduction in land rental fees during the development phase, potential further reductions during the preliminary engineering design stage ( FEED ), a reduction in basic royalties at the beginning of production, and a corporate income tax exemption for up to 10 years. These measures are designed to support the economic viability of early-stage projects, improve their commercial feasibility, and facilitate them towards final investment decisions.
In the fourth round, Hydrom launched a green hydrogen auction for data centers in Zofar, providing investment opportunities in the fields of energy and digital infrastructure. With data centers as the anchor buyers, this auction will connect renewable energy and green hydrogen production with their demand for stable power supply, adopting a demand-driven project allocation method to support the development of local hydrogen energy applications. Intentions to participate can now be registered, with the deadline being February 2027.
Bidders interested in participating in the fourth round of auctions can register through the official auction platform Hydrom. For a complete registration guide, please refer to hydrom.com.
