Saturday, May 02
05:35 PM

Deals signed for phase 2 and 3 of ACME’s hydrogen project in Duqm

18 May 2025

Muscat – Hydrom, the Public Authority for Special Economic Zones and Free Zones (OPAZ), and ACME Group on Sunday signed a project development agreement and usufruct agreement for the incorporation of Phase 2 and 3 of ACME’s green hydrogen and ammonia project in the Special Economic Zone at Duqm (SEZAD).

The agreements mark the formal onboarding of one of the sultanate’s earliest hydrogen initiatives into Hydrom’s portfolio, concluding the consolidation of all commercial hydrogen developments under a single national structure.

The agreements were signed by H E Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals and Hydrom’s Chairman along with H E Sheikh Dr Ali bin Masoud al Sunaidy, Chairman of OPAZ, and Gursharan Jassal, Country Manager for ACME.

The two new phases span a combined area of 80 sqkm and are projected to produce around 71,000 tonnes of green hydrogen and 400,000 tonnes of green ammonia annually per phase. This expansion follows the commencement of construction for ACME’s Phase 1 with an output of 100,000 tonnes of green ammonia annually. With all phases completed, ACME aims to reach an annual production capacity of 0.9mn tonnes of green ammonia.

Eng Abdulaziz al Shidhani, Managing Director of Hydrom, said, “The formal integration of ACME’s project into Hydrom’s framework marks a significant milestone in Oman’s green hydrogen journey. This step not only consolidates Oman’s early initiatives but also demonstrates our commitment to structured and scalable development. By unifying all major projects under a cohesive national strategy, we are boosting investor confidence and reaffirming Oman’s position as a competitive player in the global green hydrogen market.”

The agreements comes as Hydrom advances its third land auction round, highlighting the sustained momentum of Oman’s hydrogen strategy. With a complete portfolio now in place and the regulatory, infrastructure and human capital enablers progressing as planned, the sector is moving forward with the clarity and coordination needed to meet global offtake demand and realize Oman’s long-term ambition to become a leading global exporter of green hydrogen.

Gursharan Jassal said, “We are honoured to sign this landmark agreement for the development of the next phase of the green ammonia project in Duqm – a pivotal step in advancing Oman’s transition to a sustainable energy future. This milestone reflects our shared commitment to achieving Oman Vision 2040 and reinforces the sultanate’s growing role in the global green hydrogen economy.”

With this signing, Hydrom’s awarded portfolio of large-scale green hydrogen projects in the governorates of Al Wusta and Dhofar rises to nine, representing over $50bn in expected investment commitments and a combined production capacity of nearly 1.5mn tonnes of green hydrogen per annum by 2030. Enabled by nearly 35 GW of renewable energy, these projects are coordinated within a single national framework designed to deliver at scale and aligned with global demand. Through this structured portfolio, Hydrom continues to advance Oman’s positioning as one of the most advanced and investment-ready hydrogen ecosystems globally.

As global markets move from hydrogen ambition to action, Oman is delivering a credible platform that enables scale, certainty, and long-term offtake. With legacy developments now integrated, new projects underway, and Round 3 in progress, the Sultanate offers a complete value chain, from resource to infrastructure to export.

© 2021 Apex Press and Publishing. All Rights Reserved. Powered by Mesdac