Energy
Oman awards green hydrogen projects at COP31
Oman has advanced its green hydrogen strategy by awarding two integrated projects and launching a new data centre auction at COP31.
Key points
- Oman awarded two green hydrogen projects with a target output of 121,000t annually by 2032.
- A fourth auction round was launched to supply green energy to data centres in Dhofar.
- Fiscal incentives include reduced land lease fees and up to ten years of corporate tax exemption.
What happened
Oman has expanded its clean energy footprint by securing two major agreements for integrated green hydrogen developments in the port town of Duqm. Power Technology reported that the announcements were made during the COP31 climate summit in Antalya, Türkiye, coordinated by the nation's hydrogen body, Hydrom.
The first venture brings together an Omani exploration firm and an Italian energy enterprise. This partnership intends to manufacture green ammonium nitrate destined for agricultural and mining applications. Operations are slated to generate 625,000t of the compound annually by 2032, supported by 50,000t of green hydrogen produced from a dedicated renewable energy facility.
A separate agreement involves a three-way consortium comprising local enterprise, an Indonesian power subsidiary, and a Singaporean offshore specialist. This group will construct a facility aimed at exporting 400,000t of green ammonia annually by the end of the decade. The installation relies on extensive solar generation and substantial electrolysis capacity.
Hydrom also initiated its fourth auction round during the summit, introducing the Green-Powered Data Centre Hydrogen Auction in Dhofar. This framework shifts towards a demand-led model connecting renewable hydrogen directly with the power demands of data facilities. Interested developers have until February 2027 to submit expressions of interest.
Why it matters
According to World Bank figures, Oman's fuel exports accounted for 72.4% of its merchandise exports in 2025, highlighting an economy deeply reliant on traditional hydrocarbons. Initiatives to diversify into green hydrogen offer critical insights for other resource-dependent nations across the Global South seeking long-term industrial transition.
For African energy investors and policymakers, Oman's structured use of fiscal incentives—such as reduced lease fees, lower initial royalties, and corporate tax exemptions—demonstrates how governments can successfully attract private capital into capital-intensive renewable sectors. As African nations increasingly look to establish green hydrogen hubs, competitive regulatory frameworks will remain central to securing international partnerships.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
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Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
