Oman set to launch third green hydrogen tender in early 2025

Hydrom, an entity orchestrating Oman’s national interest in green hydrogen, has unveiled plans to launch the third round of public bidding on lands for green hydrogen projects in the first quarter of 2025.

Hydrom announced the third green hydrogen tender during the gH2 Investor Day on December 11, 2024.

As reported, the bidding aims to attract international and local investors, with a focus on enhancing in-country value and preparing the necessary infrastructure.

The new bidding round will introduce innovative mechanisms like double-sided auctions, refined block strategies, and streamlined processes to align hydrogen production with industries such as green steel and fertilizers, Hydrom said.

With the auction process to begin in the first quarter of 2025, winning projects are expected to be announced between the last quarter of 2025 and the first quarter of 2026.

The forthcoming bidding round builds on the previous two auctions launched in late 2022 and the first quarter of 2024.

The first round ended in 2023 with the selection of five large-scale green hydrogen projects, representing a total investment of more than $30 billion and a total production of 750 ktpa. 

The second round awarded up to three land blocks in the Dhofar area,  bringing the total hydrogen production in Oman to 1.38 million tonnes per year (mtpa) by 2030. 

Among the projects selected in the first two rounds is the Hyport Duqm project which is being developed by Belgian offshore energy and dredging contractor DEME, Omani energy company OQ, and, as of recently, UK energy major BP.

This project is a part of Oman’s collaboration with Belgium which was recently reinforced with a ‘landmark’ memorandum of understanding (MoU) signed by the Belgian Hydrogen Council, a representative of the country’s hydrogen ecosystem, and Hydrom.

In March 2024, Oman’s Hydrom also teamed up with Germany’s gas group VNG to examine the economic potential of building a green hydrogen and ammonia value chain between the two countries.

When it comes to partnerships with other European countries, it is worth noting that The Sultanate, together with Port of Amsterdam, Zenith Energy Terminals, and GasLog, is studying the development of a liquid hydrogen supply chain that will deliver Omani green hydrogen to Amsterdam and onwards to Europe.