Oman will support two green hydrogen projects with land fee reductions and tax exemptions after selecting the developments in its third auction round.
The Sultanate’s national hydrogen coordinator Hydrom, selected two consortia aiming to produce a combined 121,000 tonnes of green hydrogen by 2032.
The deals under its third auction round grant developers 100km to 300km of land inside the special economic zone at Duqm, alongside tax breaks and fee cuts for 10 years.
Under the first agreement, Omani oil and gas firm Petrogas E&P will partner with Italian renewables developer Bio3 Energy to develop a green ammonium nitrate facility with a capacity of 625,000 tonnes per year.
The facility will integrate roughly 50,000 tonnes of annual green hydrogen production.
The second agreement will see PLN Indonesia Power Renewables build a 400,000-tonne per year green ammonia plant with Oman-based investment firm Alawi Enterprise and Singaporean energy provider HBA Offshore International.
Launched in August 2025 with the aim of speeding up final investment decisions for projects in the Sultanate, it offers a 90% reduction in land fees, base royalty reductions, and corporate tax exemptions for up to 10 years.
Hydrom also launched its fourth auction round, pivoting to a data centre power-led initiative offering opportunities in energy and digital infrastructure.
The organisation said this new focus would introduce a “demand-led approach to project allocation that supports the development of domestic hydrogen applications.”
A call for expressions of interest is now open until February next year.
Across Hydrom’s first two auctions, it entered into deals with eight projects in Duqm and Salalah with a combined potential of up to 1.2 million tonnes of green hydrogen per year.
