Oman has awarded two integrated green hydrogen projects in Duqm under the third auction round of its national hydrogen programme, with combined planned production capacity of approximately 121,000 tonnes annually by 2032. The agreements, announced by Hydrogen Oman (Hydrom) on 12 November 2026 during COP31, will support green ammonium nitrate and green ammonia production.
The two projects involve consortia led by Oman’s Petrogas E&P and Italy’s Bio3Energy Srl, and Indonesia’s PLN Indonesia Power Renewables in partnership with Oman’s Alawi Enterprises and Singapore’s HBA Offshore International. The Duqm awards add to a pipeline of industrial hydrogen projects, including Repsol’s Tarragona renewable hydrogen project in Spain.
Alongside the project awards, Hydrom launched its fourth auction round, introducing a Green-Powered Data Centre Hydrogen Auction in Dhofar. The initiative aims to connect renewable energy and green hydrogen production with the electricity requirements of data centres, positioning digital infrastructure as a potential anchor customer for domestic hydrogen applications.
Petrogas and Bio3Energy to Develop Green Ammonium Nitrate Project
The first project, awarded to Oman’s Petrogas E&P and Italy’s Bio3Energy Srl, will introduce green ammonium nitrate production as a new downstream application for Oman’s renewable hydrogen industry.
The development targets annual production of approximately 625,000 tonnes of green ammonium nitrate by 2032, with applications in the fertiliser and mining sectors.
The project is expected to consume around 50,000 tonnes of green hydrogen annually. Its production system will be supported by approximately 1.16 GW of renewable energy capacity across a 100-square-kilometre site in Duqm.
The agreement also provides for a proposed reservation of an additional 100 square kilometres of land to accommodate potential future expansion.
The project expands Oman’s planned hydrogen-based industrial portfolio beyond green ammonia exports by introducing another downstream product with applications in established industrial markets.
PLN Indonesia Power Renewables Consortium Plans 400,000 Tonnes of Green Ammonia
The second project was awarded to a consortium comprising Indonesia’s PLN Indonesia Power Renewables, Oman’s Alawi Enterprises and Singapore’s HBA Offshore International.
The consortium plans to develop an integrated green hydrogen and ammonia production facility across 100 square kilometres in Duqm.
The project targets annual production of approximately 400,000 tonnes of green ammonia for export by 2032. It will be supported by around 1.45 GW of solar generation capacity and 1 GW of electrolysis capacity.
The development will add to Oman’s planned green ammonia production capacity and strengthen the country’s ambitions to establish itself as an exporter of renewable hydrogen derivatives.
Both projects are at the awarded development stage, with their production targets dependent on further project development and investment decisions.
Hydrom Introduces Investment Incentives Under Third Auction Round
Hydrom said its third auction round incorporated changes intended to improve project economics and attract greater participation from developers.
The revised framework gave bidders more flexibility to define their project footprints within land blocks of up to 300 square kilometres, subject to a minimum project area of 100 square kilometres.
Developers were also given an extended nine-month period to prepare their bids. The auction framework included several fiscal incentives designed to reduce early-stage development costs and improve commercial viability.
Hydrom said these measures were introduced following feedback from developers and market-sounding exercises, reflecting the need to adapt project structures to changing conditions in the global hydrogen market.
The incentives are intended to support project development and progress towards final investment decisions.
Fourth Auction Round Links Green Hydrogen with Data Centre Power Demand
Alongside the Duqm awards, Hydrom launched its fourth auction round through the Green-Powered Data Centre Hydrogen Auction in Dhofar.
The new initiative introduces a demand-led approach by positioning data centres as anchor offtakers for renewable energy and hydrogen-linked power solutions.
Under the proposed framework, renewable energy and green hydrogen production will be connected to data centres’ requirements for reliable electricity supply. Hydrogen-based firming is being considered as an additional energy option alongside renewable energy and grid electricity.
The approach is intended to connect Oman’s renewable energy resources and hydrogen production capabilities with the expanding power requirements of digital infrastructure, including artificial intelligence and cloud computing facilities.
Registration for expressions of interest in Round 4 is open until February 2027. Interested developers can register through Hydrom’s official auction platform.
Unlike the third-round awards, the fourth round is currently an investment and bidding opportunity. No winning consortium or project capacity has been announced in the supplied announcement.
Oman Expands Its Green Hydrogen Development Pipeline
The latest awards add two projects to Oman’s broader green hydrogen development programme, which is being coordinated by Hydrom.
The country is pursuing the development of renewable hydrogen production hubs, particularly in Duqm and Dhofar, with the objective of supporting both exports and domestic industrial applications.
The latest auction results also reflect a shift towards integrating hydrogen production with identifiable downstream markets, including fertiliser production, ammonia exports and energy requirements from data centres.
According to Hydrom, Oman is preparing to begin its first commercial-scale green hydrogen production in 2027. Construction is under way on the first phase of ACME Group’s green hydrogen and ammonia project in Duqm, with production expected to begin in 2027.
Hydrom is also advancing shared hydrogen infrastructure, with master planning and pre-FEED activities completed and FEED studies under way.
Bioenergy Business Analysis
Oman’s latest green hydrogen awards highlight the growing importance of downstream demand and industrial integration in the development of large-scale hydrogen markets.
The Petrogas–Bio3Energy project introduces green ammonium nitrate as an additional industrial application, while the PLN Indonesia Power Renewables consortium is targeting green ammonia exports. Together, the developments demonstrate how renewable hydrogen can support the production of industrial chemicals and hydrogen-derived fuels rather than being developed solely as an export commodity.
However, the commercial viability of these developments will depend on several factors, including renewable electricity costs, electrolyser economics, infrastructure availability, financing and the ability to secure long-term offtake agreements.
