Oman Introduces Financial Incentives for Green Hydrogen Projects to Ensure Preparedness for Third Auction Round
In the Sultanate of Oman, the third green hydrogen auction round is generating a strong market response, with nearly 100 registrations from major industry players and consortia. This significant interest underscores a sustained appetite for structured, policy-backed green hydrogen development opportunities.
The auction, orchestrated by Hydrom (Oman's hydrogen strategy orchestrator), offers a land block of up to 300 square kilometers in Duqm. Developers can define project footprints covering a minimum of 100 square kilometers within this block, allowing tailored project configurations that align with individual development strategies and market demands.
One of the key incentives for project developers is the permission to sell surplus renewable electricity. Unlike earlier rounds, investors can monetize excess green power beyond hydrogen production by selling it into the market, creating an additional revenue stream. This flexibility is intended to improve project economics and bankability, aligned with initiatives to liberalize Oman’s power market and enable bilateral electricity trading.
New fiscal incentives have also been introduced to support early-stage project economics. These measures include a 90% reduction in land lease fees during the development stage, potential further relief during the Front-End Engineering Design (FEED) phase, significant reductions in base royalties during the initial years of hydrogen production, and Corporate Tax exemptions for up to 10 years. These incentives are designed to improve internal rates of return and facilitate accelerated progress towards final investment decisions.
The incentives and regulatory framework span the entire development phase and the first 15 years of operations, reflecting Hydrom's proactive approach to evolving global hydrogen market dynamics and increasing investment readiness.
Interested parties are encouraged to register and submit their documents via the dedicated platform on the Hydrom website (www.hydrom.om). Additionally, an updated consortium matchmaking list will be launched by Hydrom to facilitate strategic project partnerships.
Round 3 continues to attract serious first movers and institutional investors seeking to scale up operations in a competitive and structured environment. With the Statement of Qualification submission window open until 31 October 2025, there is still time for interested parties to seize this opportunity to contribute to Oman's national Green Hydrogen Strategy and be part of one of the world's most structured and investment-ready hydrogen ecosystems.
[1] Source: Hydrom Press Release, [Link to Source] [2] Source: Hydrom Website, [Link to Source] [3] Source: Hydrom Consortium Matchmaking List, [Link to Source] [4] Source: Hydrom Investor Presentation, [Link to Source] [5] Source: Hydrom FAQs, [Link to Source]
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