MUSCAT – – November 12, 2026 -- Oman has awarded two integrated green hydrogen projects in Duqm with combined planned output of about 121,000 tonnes of green hydrogen a year by 2032, and has opened a fourth auction round that ties hydrogen production to data centre power demand. Hydrom, the national orchestrator of Oman's green hydrogen strategy, announced the third-round awards during COP31.
Petrogas and Bio3Energy target 625,000 tonnes of green ammonium nitrate
Oman's Petrogas E&P and Italy's Bio3Energy Srl will introduce green ammonium nitrate as a new downstream product in Oman, aimed at the fertiliser and mining sectors. The project targets 625,000 tonnes annually by 2032.
It will use about 50,000 tonnes of green hydrogen a year, produced from 1.16 GW of renewable capacity on a 100-square-kilometre site. The agreement includes a proposed reservation of another 100 square kilometres for expansion.
PLN Indonesia Power Renewables-led consortium plans 400,000 tonnes of green ammonia for export
Indonesia's PLN Indonesia Power Renewables, Oman's Alawi Enterprises and Singapore's HBA Offshore International PTE will develop an integrated hydrogen and ammonia project on 100 square kilometres. It targets 400,000 tonnes of green ammonia a year for export by 2032. The plan relies on about 1.45 GW of solar generation and 1 GW of electrolysis capacity.
Hydrom cut land lease fees by 90% and offered tax exemptions of up to ten years
Round 3 used a more flexible, investor-oriented framework built on developer feedback from earlier rounds. Developers could define project footprints within land blocks of up to 300 square kilometres, with a minimum project area of 100 square kilometres. Hydrom also extended the bid preparation period to nine months.
Following a market sounding exercise, Hydrom added fiscal incentives:
- A 90% reduction in land lease fees during development, with potential further relief during the Front-End Engineering Design (FEED) phase.
- Reduced base royalties in the initial years of production.
- Corporate tax exemptions of up to ten years.
Hydrom said the measures are meant to support early-stage project economics and progress toward final investment decisions, as the global hydrogen industry puts greater weight on project economics and downstream markets.
Round 4 makes data centres anchor offtakers for Dhofar hydrogen projects
Hydrom's Green-Powered Data Centre Hydrogen Auction in Dhofar links renewable energy and green hydrogen production to data centres' need for reliable electricity. The auction takes a demand-led approach to project allocation and is intended to support domestic hydrogen applications. It spans the energy and digital infrastructure sectors.
Registration for expressions of interest is open until February 2027. Bidders register through Hydrom's official auction platform.