Oman has initiated the third round of writer bidding for green hydrogen, making it a fresh page in its plan to emerge as a global superstar in green hydrogen production and export. Designed and orchestrated by Hydrom, the third auction provides innovative, flexible opportunities to qualified developers to invest in Oman’s fast-growing hydrogen economy. The auction involves implementing high-tech AI tools and data analytics to optimize the participation of bidders to increase the competitiveness of the global green hydrogen market.
The Third Auction round is introducing flexible development opportunities
The Sultanate of Oman has deployed the third of its green hydrogen auctions to launch a new chapter as part of its efforts to be the leading global green hydrogen producer and exporter. Designed and orchestrated by Hydrom, the third auction presents innovative and flexible opportunities for qualified developers to invest in Oman’s fast-growing hydrogen ecosystem and have a stake in enabling the build-up of a competitive and scalable global green hydrogen economy.
Based on the success of past rounds, in the third round, lessons learned about bidder participation and competitiveness are applied. A land block up to an area of 300 square kilometers in size has been offered in the area of Duqm, appealing for development proposals of at least 100 square kilometers. Bidders will have a choice in their project footprint within the block, adding flexibility to tailor configurations to fit individual development strategies and market requirements.
A lengthy preparation period promotes thorough project preparation
Bidders will have a longer preparation period from the date that the Request for Qualification (RFQ) is issued to the date when bids must be submitted (nine months), allowing bidders chiefly time for well-thought-out planning of the project. In addition to producing green hydrogen and hydrogen derivatives, developers can also look into selling the extra renewable electricity to the national grid, where applicable, with regulatory approvals, so that this adds maximum value to the development and integrates into a broader framework of Oman’s energy transition.
Infrastructure advantages – strategic location places Oman in a position of aggression
Developers engaged during the third round will be able they take advantage of Oman’s considerable competitive advantages, which comprise accessibility to common-use infrastructure, operating under a stable regulatory framework, and undergoing strategic proximity to key centers of demand in Europe and Asia. Oman’s comprehensive energy transition efforts also include the development of a dedicated 2,000-kilometer-long hydrogen pipeline as well as the development of the world’s first liquid hydrogen export corridor connecting Oman to the Netherlands and Germany and onwards to Europe.
Oman announced eight large-scale green hydrogen projects in Duqm and Dhofar in two previous rounds, totaling USD 49 billion in investment pledges, with the end production capacity of all eight projects reaching more than 1 million tons per annum of green hydrogen by 2030. These projects, fueled by over 30 GW of renewable energy, put Oman at the forefront of the most developed and investible hydrogen ecosystem in the world.
The advanced auction process timeline ensures thorough evaluation
The use of AI tools and advanced analytics in the auction process acknowledges Oman’s dedication to using cutting-edge technology to provide better decision-making and project evaluation. This technological approach is a sure way to have the most viable and competitive projects selected and offers the highest potential for successful implementation and long-term sustainability for the rapidly evolving green hydrogen field.
Oman’s third green hydrogen auction marks an important milestone in the energy transition strategy of the Sultanate and is an innovative combination of innovative auction mechanisms and strategic infrastructure efforts. With a successful round 2 Indo-Dutch-German Green Hydrogen Production Plant and Oman already having seen more than $49.2 billion in recent rounds, this signing adds more block in the pillar supporting Oman’s footprint.