Oman's Hydrom Releases RFQ for Third Green Hydrogen Auction Round with Innovative Approaches
Key Ideas
  • Hydrom in Oman has released the RFQ for the third green hydrogen auction round, offering 300 sq km of land near the Duqm Special Economic Zone, with unique flexibility in land selection.
  • Developers are expected to produce a minimum of 50,000 tonnes of green hydrogen annually from a 100 sq km land parcel, with a 47-year lease period.
  • The projects aim to benefit from shared infrastructure, including a hydrogen pipeline and a liquid hydrogen export corridor connecting Oman to Europe, with a significant investment commitment of over $49 billion targeting 1 million tonnes per annum production by 2030.
  • Hydrom's forward-looking strategy includes exploring excess green electricity supply to the grid, emphasizing local industry support, and planning for infrastructure commissioning by 2030.
Hydrom, the organization spearheading the green hydrogen industry development in Oman, has initiated the process for the third round of green hydrogen auctions by releasing the RFQ. The prospective developers will have access to 300 sq km of land situated approximately 100 km away from the Duqm Special Economic Zone. Unlike previous approaches, developers now have the freedom to choose their preferred site and land size within the allocated block, starting from a minimum of 100 sq km. The expected minimum green hydrogen production from a 100 sq km land parcel is set at 50,000 tonnes per annum. Notably, the land lease duration spans 47 years, divided into a seven-year construction phase and a subsequent 40-year operational period. Hydrom has introduced a unique approach by prohibiting phased execution within the awarded block while allowing applicants to request additional lands for future expansions. The organization will implement charges for the utilized land area post-production commencement, alongside other applicable fees and taxes. Moreover, Hydrom is poised to offer shared infrastructure to project companies, which is currently in the pre-FEED stage, with the Final Investment Decision (FID) anticipated by 2027 and commissioning scheduled for 2030. The projects are strategically planned to leverage a 2,000-kilometer hydrogen pipeline and the establishment of a pioneering liquid hydrogen export corridor connecting Oman to Europe, specifically the Netherlands and Germany. This ambitious endeavor builds upon Oman's successful track record of awarding eight large-scale green hydrogen projects, attracting substantial investment commitments exceeding $49 billion. These projects are designed to collectively achieve a production capacity of over 1 million tonnes per annum by 2030, powered by more than 30 gigawatts (GW) of renewable energy sources. Hydrom's forward-looking strategy involves exploring the possibility of supplying excess green electricity to the grid, emphasizing the production of green hydrogen for local industries and exports, and facilitating infrastructure readiness for future developments.
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