Oman's green hydrogen projects are helping the country progress towards its goal of Oman Vision 2040, a National Energy Strategy that aims to promote local renewable energy sources in Oman and achieve zero carbon emissions by 2050. To support Oman’s energy development, an initiative of Hydrogen Oman SPC (Hydrom) was established in 2022 under Salim Nasser AL Aufi - Minister of Energy and Minerals in Oman.

Under this, several projects, like the Green Energy Oman, EDF Group, J-POWER, Yamna project are awarded by Hydrom that can promote local renewable hydrogen in Oman globally. Oman aims to gain prominence in the global hydrogen industry among other nations.

Natural gas has been a survival node for Oman in the Middle East. However, it aims to benefit equally from renewable energy sources like green hydrogen-like Saudi Arabia and the UAE. With several renewable green hydrogen projects, Oman aims to achieve its National Hydrogen Strategy goals. Below is a list of upcoming green hydrogen projects in Oman.

Top Upcoming Green Hydrogen Projects in Oman (By Capacity)

Green Energy Oman (GEO)

Green Energy Oman (GEO) is a consortium project of Shell, EnerTech (a Kuwaiti state-owned company), OQ (the Sultanate of Oman’s global integrated energy company), and InterContinental Energy. It is considered one of the largest green hydrogen production plants under the AI Wusta governorate in Oman's green hydrogen sector.

InterContinental Energy signed a contract with Hydrom and its partners on 1st June 2023. This project will produce hydrogen and other green hydrogen derivatives in the AI Wusta region of the Sultanate of Oman. After its commission, it will generate 150 KTPA of green hydrogen annually using 4 GW of renewable energy. This project's upcoming phases can include expanding the renewable energy capacity from 4 GW to 25 GW. The combined capacity of the entire Green Energy Oman will deliver 1.8 Million tonnes of green hydrogen per annum, thus leading to energy transition in Oman.

Green Hydrogen Project by POSCO-ENGIE  

Hydrom awarded the POSCO-ENGIE-led consortium the contract under the land block (Z1-02). This project will be built across 340 sq km, with downstream elements built at the Port of Duqm.

The POSCO-ENGIE green hydrogen project will be built with an installed renewable energy capacity of 5 GW, which comprises wind power, solar power, and an additional BESS (Battery Energy Storage System). This hydrogen plant will produce 200 KTPA (kilotons per annum) of renewable hydrogen. This green hydrogen production will be transported to Duqm via a pipeline and converted into 1.2 million metric tons of green ammonia annually, which will be exported. 

In March 2022, POSCO and ENGIE signed a MoU (Memorandum of Understanding) to explore joint ventures. This project is aligned with Korea's national decarbonization objective to reduce the carbon footprint by 40% by 2030. This project contract awarded is for 47 years, with a breakdown of seven years of development and construction and a 40-year operational period. It will begin construction by 2027 and deliver its first green ammonia shipment to Korea by Q4 2030.

Amnah Green Hydrogen Project

The Amnah Green hydrogen project was awarded to a consortium led by Copenhagen Infrastructure Partners, Blue Power Partners, and AI Khadra (Oman's Hind Bahwan Group) by Hyrdom on June 4, 2023. 

This project is designed to produce 200,000 metric tons of green hydrogen annually. It will be built from 4.5 GW of installed renewable energy green steel plants in Port Duqm. It is suitable within the SEZAD region. The Amnah Green Hydrogen project will be one of Oman's largest solar power projects, thus contributing to the vision of a zero-carbon future by 2050.

Green Hydrogen Project by Actis and Fortescue

The Actis and Fortescue Project is one of Oman's upcoming green hydrogen projects. It was awarded by the Hydrogen Oman SPC (Hydrom) in Muscat to the consortium of Actis, a global investor in sustainable infrastructure, and Fortescue, a green energy technology company, on April 29, 2024. 

This project will be built with 4.5 GW of wind and solar energy to generate power for electrolyzers and produce up to 200,000 metric tons of green hydrogen annually.

The Actis and Fortescue projects will be built with advanced green hydrogen technology and sold to local industrial off-takers. The green hydrogen produced annually will be further processed into green ammonia, which will be exported via the Port of Salalah. This project is built to promote localized, clean energy in Oman.

Green Hydrogen Project by EDF Group, J-POWER, and Yamna Project

Hydrom awarded the EDF Group, J-POWER, and Yamna Project in Muscat on 29th April 2024. It is awarded to the consortium of EDF Renewables, J Power, and YamnaCo Ltd.

This project will be built using around 4.5 GW of wind and solar energy, along with a battery storage system that will, in turn, power a 2.5 GW state-of-the-art electrolyzer to produce approximately 178,000 metric tons of green hydrogen annually by 2030. 

The hydrogen produced will be supplied to an ammonia plant in the Salalah Free Zone that will produce 1 million metric tons per year of green ammonia. The project development agreement signed between the consortium and Hydrom will grant the consortium 47 years to develop, build, own, operate, and maintain this project. 

HyPort Duqm Project 

The HyPort Duqm project was developed under DEME concessions and OQ and was awarded by Hydrom on June 21, 2023. This project will be built on a 150-square km area with a combined renewable capacity of 1.3 GW of wind power and solar energy in Phase 1 and 2.7 GW in Phase 2. The project's first phase will produce about 330,000 metric tons of green ammonia. It will produce 650,000 metric tons of green ammonia in the second phase. 

This plant will be located in the Special Economic Zone at Duqm and produce green hydrogen and ammonia. The Hypoert Duqum project is a part of Oman's Vision 2040 under the OQ Group to achieve zero carbon neutrality by the year 2050. Also, it will contribute hugely to the electrolyzer market globally.

Sur Hydrogen Cluster

The Sur Hydrogen Cluster is aimed at integrating large-scale renewables and green hydrogen production to help industrial, petrochemical, and energy projects in the Southern Sur city to achieve their net-zero goals. It is located in Sur, Sharqiyah, Oman, and is anticipated to produce 487 tonnes of low-carbon hydrogen per day upon full implementation. The green hydrogen project includes a 500 MW plant with an estimated cost of USD 1,000 million.

This project includes partners as Oman LNG, Sustainable Energy Research Centre (SERC) at Sultan Qaboos University (SQU), Oman Hydrogen Alliance (Hy-Fly), Phoenix Power Oman, Oman India Fertiliser Company (OMIFCO), OQ Gas Networks (OQGN), OQ Alternative Energy, and Madayn.

Currently, the project is set to advance towards the feasibility stage, which is expected to commence in Q2 2025. 

SalalaH2

The SalalaH2 was first announced in October 2021 by the consortium of OQ, Marubeni, Linde, Samsung C&T, and Dutco. This project is expected to produce 1,000 tonnes of green ammonia per day. With a project cost of USD 5000 million, the project will be located in Salalah, south Oman. It will feature 1 GW of wind and solar capacity and will power 400 MW of electrolysers, which will feed an existing ammonia production plant owned and operated by OQ.

Currently the contract is awarded with a capacity of 2000 MW. Once operational, it aims to target export markets of Japan, South Korea, and the European Union. The FID is expected in 2026 with operations scheduled for 2030.

BP Oman Green Hydrogen Project

The Bp Oman Green Hydrogen Project was awarded to Bp on January 17, 2022, under the Strategic Framework Agreement (SFA). This project will be built over a landscape of 8,000 km2 with wind and solar energy to power the electrolyzers and produce green hydrogen. 

The BP Oman Green Hydrogen Project is expected to produce 150,000 KTPA (kilo tonnes per annum) of green hydrogen. This project is currently in the planning and designing phase. This renewable energy project with a 3.5 GW capacity will export ammonia produced globally. 

ACME Duqm Project - Phase 2 & 3

The Duqm Green Hydrogen Production Plant Phase-2 is being developed by Green Hydrogen and Chemicals Company SAOC (GHC), a wholly-owned subsidiary ACME Group in the Special Economic Zone at Duqm (SEZAD), Oman. The project is designed in phases. Phase 1 has an initial capacity of 100,000 tonnes per annum (tpa) of green ammonia, which is being constructed and is expected to be completed by Q1 2027.

Phases 2 and 3 are a green hydrogen and ammonia project. Both phases combined are planned to produce about 71,000 tons of green hydrogen and 400,000 tons of green ammonia annually. On 18th May 2025, the Public Authority for Special Economic Zones and Free Zones, OPAZ, Hydrogen Oman (Hydrom), and ACME Group signed project development and land infrastructure agreements. Phases 2 and 3 are currently in the planning stage with an estimated capacity of 410 MW.

Current and Future Scope of the Green Hydrogen Industry in Oman

The green hydrogen industry in Oman is expanding with several initiatives under the Oman Vision 2040 to position the Sultanate of Oman on the pedestal of the global green hydrogen sector. These initiatives include the formation of a national alliance by the Ministry of Energy and Minerals for green hydrogen named Hy-Fly. Oman's government aims to produce 1 million metric tons of clean hydrogen annually by the end of 2030. 

The current capacity is close to 32,500 metric tons, which will likely expand to 3.75 million metric tons per year by 2040 and then 8.5 million metric tons annually by 2050. Apart from this, Oman and the Netherlands signed a joint study agreement for green hydrogen liquefaction and export.

Additionally, under this program, Oman aims to achieve 30 GW of electrolyzer capacity by 2040. To expand the green hydrogen capacity of Oman, three additional blocks of green hydrogen projects are to be awarded in Dhofar by Hydrom in Q4 of 2024.

Conclusion

Oman Vision 2040, led by the Hydrogen Oman SPC (Hydrom), is advancing towards zero carbon emissions by 2050 with several green hydrogen projects. Key initiatives include the Green Energy Oman (GEO) project, the green hydrogen project by POSCO-ENGIE, and the Amnah Green Hydrogen project, which are awarded by Hydrom to enhance the overall green hydrogen capacity of Oman and provide alternate renewable energy sources over natural gas. Thus reducing the overall use of fossil fuels in Oman.

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