Oman to Enhance Hydrogen Concessions Amid Global Industry Shift
Key Ideas
- Oman plans to launch its third auction of green hydrogen concessions in early 2025, despite the global industry sentiment cooling.
- The auctioned land blocks will be allocated to project developers in late 2025 or early 2026, as confirmed by state developer Hydrom at an investor day.
- The government is refining the auction design to address challenges faced by developers globally, possibly introducing novel mechanisms.
- This move signals Oman's commitment to advancing green hydrogen projects and attracting international developers to the region.
Oman is gearing up to offer more land concessions to international hydrogen project developers in its upcoming third auction of green hydrogen concessions, set to take place in the first quarter of 2025. This announcement comes amidst a global industry sentiment shift towards hydrogen projects. The state developer, Hydrom, shared during an investor day in Muscat that the allocated land blocks from the auction will be assigned to potential project developers in late 2025 or early 2026. To adapt to the challenges faced by developers worldwide in moving projects towards Final Investment Decision (FID), the government is planning to introduce revisions to the auction mechanism. These revisions could include innovative approaches like the double auction structure. By refining the auction design, Oman aims to demonstrate its dedication to promoting green hydrogen initiatives and attracting international interest in the sector.