Hydrom
Announces New Incentives to Ensure Delivery-Readiness of Green Hydrogen
Projects
Muscat,
13 Aug (ONA) — Hydrom has announced new fiscal incentives designed to enhance
the commercial viability of projects that will be awarded through the ongoing
third green hydrogen auction round.
The
measures represent a targeted response to a market sounding
exercise conducted by Hydrom earlier this year and evolving global market
dynamics, reaffirming the country’s position as one of the world’s most
structured and investment-ready hydrogen ecosystems.
The
new incentive includes a 90% reduction in land lease fees during the
development stage with potential for further relief during the Front-End
Engineering Design (FEED) phase, alongside significant reductions in base
royalties during the initial years of production, and Corporate Tax exemptions
for up to 10 years. Together, these measures are designed to support
early-stage project economics, improve internal rates of return, and facilitate
accelerated progress towards final investment decisions.
Eng.
Abdulaziz Al Shidhani, Managing Director of Hydrom said. “The global hydrogen
landscape is entering a phase of consolidation, with developers prioritizing jurisdictions
that provide regulatory certainty, strong project economics, and credible
offtake potential. The newly introduced incentives reflect Hydrom’s proactive approach
to evolving market dynamics, reaffirming Oman’s position as a delivery-focused,
investment-ready destination for large-scale hydrogen development.”
Designed
with flexibility, transparency, and scalability at its core, Oman’s third
auction round is progressing with strong momentum, offering a land block of up
to300 square kilometers in Duqm and inviting proposals for projects
covering a minimum of 100 square kilometers. Bidders have the flexibility in
defining their project footprint within the block, enabling tailored
configurations that align with individual development strategies and market
requirements.
To
date, almost 100 registrations have been received from major industry players
and consortia across the green hydrogen value chain. This strong market response
underscores a sustained appetite for structured, policy-backed green hydrogen
development opportunities. Round 3 continues to attract serious first movers
and institutional investors seeking to scale up operations in a competitive and
structured environment.
The
Statement of Qualification (SoQ) submission window remains open until 31
October 2025, and Hydrom encourages all interested parties to register and
submit their documents via the dedicated platform. To support the formation of
strong consortia in Round 3, Hydrom will launch an updated consortium
matchmaking list, an established tool that has successfully connected qualified
participants seeking strategic project partnerships.
—Ends/AG
