Oman Boosts Investor Interest in Green Hydrogen with Innovative Auction Mechanisms
Key Ideas
  • Hydrom in Oman introduces new mechanisms and incentives to attract investors for the third round of green hydrogen development auctions, offering flexibility and tailored configurations.
  • The auction process includes features like a double-sided auction with a contract-for-difference model, downstream auctions for domestic industry, and phased project development.
  • Only 4% of Oman's hydrogen potential has been allocated, with the country aiming to scale up while managing risks and addressing challenges in the global hydrogen industry.
  • Hydrom focuses on building a viable local market for hydrogen, streamlining permit systems, and collaborating with global partners to balance hydrogen supply and demand.
Hydrom, the state-owned entity overseeing Oman’s green hydrogen strategy, has launched the third round of auctions for green hydrogen development blocks in Duqm. This round offers a 300 sq km land block with the flexibility for developers to bid for a minimum of 100 sq km and define their project footprint. The Managing Director of Hydrom, Abdulaziz al Shidhani, highlighted the enhanced flexibility of this round to align with investor expectations. New features in the auction process include a double-sided auction with a contract-for-difference model and downstream auctions for the domestic industry. Incentives such as phased project development and rewards for meeting milestones aim to stimulate local hydrogen demand and support developers. Hydrom is addressing challenges in the global hydrogen industry by forming government-to-government agreements with key markets and focusing on building a viable local market. The streamlined permit system reduces administrative bottlenecks, with approvals consolidated across government agencies. The success of Oman's green hydrogen sector relies on collective action and ecosystem partners fulfilling their responsibilities, with the first hydrogen plant expected to be operational between 2029 and 2031.
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