Oman awards two Duqm hydrogen projects targeting 121,000 tonnes a year

Oman has awarded two green hydrogen projects in Duqm that together target annual production of about 121,000 tonnes by 2032. Hydrom, which oversees the country’s green hydrogen programme, announced the third-round awards on 12 November 2026 at the COP31 climate conference in Antalya, Türkiye. One project will supply hydrogen for ammonium nitrate production, while the other will produce green ammonia for export. Hydrom also opened a fourth auction round in Dhofar, where data centres would serve as anchor customers for power.

What will the two Duqm projects produce?

Oman’s Petrogas E&P and Italy’s Bio3Energy Srl plan to produce 625,000 tonnes of green ammonium nitrate a year by 2032 for applications in the fertiliser and mining sectors. The project is expected to use about 50,000 tonnes of green hydrogen annually, supported by 1.16 gigawatts (GW) of renewable generation capacity. The agreement covers a 100-square-kilometre site and proposes reserving another 100 square kilometres for future expansion.

The second consortium brings together PLN Indonesia Power Renewables, Oman’s Alawi Enterprises and Singapore’s HBA Offshore International PTE. It plans to produce 400,000 tonnes of green ammonia a year for export by 2032. The project will occupy 100 square kilometres and is designed around approximately 1.45 GW of solar generation and 1 GW of electrolysis capacity. Hydrom did not disclose the investment value of either project or name buyers for the ammonia.

The Port of Duqm serves the surrounding special economic zone and has a liquid bulk jetty linked to the Duqm refinery. The port has identified hydrogen and its derivatives as potential new trades. Hydrom’s announcement did not specify the ammonia loading terminal, shipping arrangements or destination markets for the export project.

What incentives did Hydrom offer in the third auction round?

Developers had nine months to prepare bids and could propose project sites of at least 100 square kilometres within a land block of up to 300 square kilometres. Hydrom offered a 90 per cent reduction in land lease fees during development, with scope for further relief during front-end engineering design (FEED). The round also offered lower base royalties in the initial years of production and corporate tax exemptions of up to 10 years. Hydrom said the incentives were intended to reduce early costs and help developers progress towards final investment decisions.

How will Oman’s Dhofar auction link hydrogen to data centres?

The fourth auction round invites proposals that combine renewable power and green hydrogen production with the electricity needs of data centres in Dhofar. Hydrom’s model puts data centres in the role of anchor customers, giving developers a source of domestic demand around which to design projects. Registration for expressions of interest is open until February 2027 through Hydrom’s auction platform.

FAQs

When are the two Duqm hydrogen projects expected to reach their production targets?

Hydrom says the two projects target combined green hydrogen production of about 121,000 tonnes a year by 2032.

Which Duqm project is intended for export?

The consortium of PLN Indonesia Power Renewables, Alawi Enterprises and HBA Offshore International plans to produce 400,000 tonnes of green ammonia a year for export.