Hydrom set to begin third public bidding process for green hydrogen project lands

Muscat: Hydrom, Oman’s green hydrogen company, has announced the launch of its third public bidding process for green hydrogen project lands The bidding round is set to begin in March 2025.

This move underscores Oman’s continued efforts to offer investment opportunities in the renewable energy and green hydrogen sectors, supporting strategic goals and national efforts to sustain jobs and economic opportunities.

Engineer Abdulaziz bin Saeed Al Sheidhani, General Manager of Hydrom, explained that the company aims to allocate at least two new zones in this third bidding round, identified within the designated lands for green hydrogen projects in the Al Wusta and Dhofar Governorates.

 These zones will vary in size to attract new categories of potential investors and enhance participation opportunities in future rounds. In a statement to the Oman News Agency, Al Sheidhani said that, in addition to previous participants, the company targets new markets and economies such as China, the USA, several European and Asian countries, and neighbouring investments with an interest in the green hydrogen sector.

 Discussing the challenges in the hydrogen sector, Al Sheidhani noted that "challenges always exist in this sector, starting from market and procurement challenges to those related to political changes, as well as technical challenges."

He emphasised that gauging market interest will provide a clearer view of the opportunities available.

 He affirmed that green hydrogen prices mainly depend on production costs, which are gradually improving due to ongoing advancements in technology, financing, and economies of scale, contributing to reduced production costs.

On the other hand, global demand for green hydrogen is increasing, supported by incentives and government policies, as seen in countries like Germany, some EU nations, and East Asian economies like Singapore, South Korea, and Japan. Al Sheidhani added that Hydrom continues its efforts to attract more projects to achieve Oman’s strategic targets for green hydrogen.