Hydrogen Oman Anticipates Billions in Investments for Green Hydrogen Projects
Following a triumphant initial round of auctions resulting in five project awards totaling over $30 billion, Hydrogen Oman (Hydrom) is poised to attract $20 billion to $30 billion in investments during the second round of auctions for large-scale green hydrogen projects in Oman.
The inaugural public auctions, launched late last year, culminated in agreements signed in June 2023 with prominent international consortia and companies committed to establishing substantial green hydrogen and ammonia projects in the Sultanate.
In the ongoing second round of public auctions, Hydrom aims to allocate three land blocks in the Dhofar region by the end of the first quarter of 2024.
Eng Abdulaziz al Shidhani, Managing Director of Hydrom, revealed in an interview with Duqm Economist magazine, "The expected investments in the green hydrogen sector in Oman until 2050 are estimated at $140 billion. In the first round, the presupposed cost of investments amounted to about $30 billion. In the second round, we look for investments in the range of $20 billion to $30 billion."
Shidhani emphasized the role of public auctions in ensuring transparency and attracting financially solvent investors capable of implementing such ambitious projects.
Hydrom, having initially focused on the Duqm region, has shifted its attention to Dhofar in the second round, offering three opportunities to specialized companies in the green hydrogen sector.
Reflecting on the success of the first round, Shidhani noted a robust turnout, with clear competition among 60 international companies that purchased Request for Proposal (RFP) documents.
"Our goal is not to sign with any company, but with companies that can implement the project and have financial solvency, technical expertise, and clarity in the idea of the project," Shidhani explained, highlighting the significance of signing agreements rather than Memoranda of Understanding (MoUs).
From the five projects with signed agreements in June 2023, the projected production is approximately 750,000 metric tonnes of green hydrogen.
Oman's ambitious target is to produce over one million tonnes of green hydrogen by 2030, utilizing 30% of the allocated land, and gradually scaling production to around 8 million tonnes by 2050.
Shidhani conveyed Hydrom's objective for the first green hydrogen project to commence production by 2030, if not sooner.
He stated, "We expect companies to be able to reach this goal by then," outlining the development timeline and anticipating construction to commence between 2026 and 2028, with production starting in 2030.
Oman's competitive advantages, including ample land, high solar radiation, and wind power, position it as a key player in the global green hydrogen landscape.
The Sultanate aims to leverage these resources to advance its green hydrogen economy, becoming a focal point for successful investments in this burgeoning sector.
Gulam Ali Khan / Muscat Daily