Green Hydrogen Projects in Duqm: Investment and SME Opportunities
Green hydrogen is no longer a future promise; it’s fast becoming a reality of transformational investment in Duqm, Oman. With world‑class renewable resources and strategic port access, Duqm is emerging as a global hub where clean-fuel production meets open doors for investors and innovators alike. This is where vision meets value, and early movers stand to harness growth that could define the next decades of sustainable energy.
Finsoul Network Oman guides you through every step of this journey, connecting you to emerging project opportunities, auction insights, and practical pathways for participation, whether you represent a major developer or a growing SME. Duqm’s green hydrogen landscape is rich with potential, and we make it actionable for your success.
Oman's National Green Hydrogen Strategy and Export Vision
Oman has set out a clear national strategy to make green hydrogen a cornerstone of its future energy and export economy. A key part of this strategy is Hydrom, the government‑backed agency responsible for planning, structuring and coordinating green hydrogen projects across the country. Hydrom works with partners, including the Public Authority for Special Economic Zones and Free Zones (OPAZ) and other government bodies, to bring major projects into a unified national framework.
This coordination streamlines land allocation, project auctions, infrastructure planning, and investor engagement, providing clarity and confidence for both local and international investors. By integrating major developments into a single strategy, Oman aims to scale up production and export green hydrogen to global markets.
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Duqm Special Economic Zone Location and Strategic Infrastructure
Duqm Special Economic Zone sits on the Arabian Sea in Al‑Wusta, Oman. Its coastal position links global shipping lanes and large markets in Africa, India, and the Gulf states.
The zone combines major transport infrastructure with vast open land and abundant solar and wind energy.
- Strategic location on world trade routes – Duqm lies along routes connecting Asia, Africa, and Europe, and its port can accommodate large vessels with deep-water berths.
- Port and logistics capacity – The Port of Duqm offers commercial, government, and bulk berths, along with road, utilities, and support services, ready to serve heavy industry and exports.
- Renewable energy resources – The zone offers large plots for solar and wind farms. Projects within it plan to deliver more than 1 GW of combined renewable capacity to power hydrogen production.
- Hydrogen and ammonia projects are underway– Major initiatives such as Hyport Duqm are designed to use wind and solar to produce green hydrogen and ammonia for export via local infrastructure.
- Fit for industrial expansion – Vast land, year‑round clean energy and direct port access make Duqm attractive for large hydrogen‑linked manufacturing and export‑oriented facilities.
Major Green Hydrogen Projects in Duqm
Duqm, Oman, is now home to some of the largest planned green hydrogen and ammonia projects in the region. These initiatives are backed by big energy firms and national bodies aiming to supply both local industry and export markets.
1. Hyport Duqm – Core Project Details
Hyport Duqm is being built in the Duqm Special Economic Zone, covering approximately 150 km². The plan is to use wind and solar power to operate electrolysers and produce green ammonia for export. In Phase 1, around 1.3 GW of combined wind and solar capacity will power production. Further expansion could increase this to over 2.7 GW, boosting output.
2. Hyport Duqm – Ownership and Partners
This project began as a partnership between Oman’s OQ and Belgium’s DEME. As of 2025, BP holds a 49 % stake and acts as operator, while OQ Alternative Energy and DEME Concessions each retain about 25.5 % ownership in the Hyport Duqm project company, sharing responsibility for delivering the green hydrogen and ammonia facility in the Duqm Special Economic Zone.
3. Hyport Duqm – Expected Output & Timeline
The first phase is expected to produce significant volumes of green hydrogen, which will then be converted into hundreds of thousands of tonnes of green ammonia each year for shipping to Europe and Asia. Commercial operations are currently targeted for 2030–2031 once detailed engineering and construction progress.
4. ACME Duqm – Expansion Phases
ACME’s project at Duqm is backed by a $3.5 billion bid and includes a larger renewable buildout with about 3 GW of solar and 500 MW of wind. The full plant is expected to produce approximately 900,000 tpa of green ammonia once all parts are completed.
5. ACME Duqm – Phases Two and Three
In May 2025, Oman’s authorities signed agreements to bring Phases 2 and 3 fully under national regulation. These phases cover approximately 80 km² in the Duqm zone.
Each of these phases is expected to generate approximately 71,000 tpa of green hydrogen and 400,000 tpa of green ammonia, further boosting Oman’s hydrogen capacity by 2030.
Hydrogen Land Auctions and Investment Entry Points
Oman’s third green hydrogen land auction near Duqm is now open and aims to attract additional project investment to the country. This round offers big land areas and a clear path for companies to join the hydrogen value chain and submit competitive bids.
- Large Land Blocks on Offer – Hydrom has put up a land block of up to 300 sq km near Duqm for this auction. Each developer must plan a project on at least 100 sq km, but can choose their exact site and layout within the larger zone.
- RFQ Submission Window – The Request for Qualifications (RFQ) stage is open until 31 October 2025, giving firms time to prepare and submit their credentials to qualify to bid.
- Bid Timeline and Awards – After SoQ shortlisting, Hydrom will issue Requests for Proposal around mid‑2025, with final bids due by the end of January 2026 and project awards expected in Q2 2026.
- Flexible Project Design – Bidders can adapt the size and footprint of their project within the 300 sq km block, rather than being limited to fixed plots, to align with their strategy.
- Extra Options and Support – Some developers may be permitted to sell surplus renewable electricity to the grid, subject to approval, and Hydrom is offering tools such as consortium matchmaking to help form strong bids.
Economic Impact for Duqm and Regional Development
Hydrogen investment in Duqm is expected to spark real economic value for the zone and the wider region. Projects totalling tens of billions of dollars bring foreign capital, strengthen non‑oil sectors, and help shift Oman’s income sources away from hydrocarbons.
These developments can boost gross domestic product as new facilities increase output and add services tied to hydrogen, ammonia, and downstream industries. Jobs will be created across construction, plant operations, logistics, and support services, with national hiring targets that build local workforce skills. Local economies around Duqm benefit too through demand for housing, transport and small business services as activity increases.
SME Opportunities in the Duqm Hydrogen Value Chain
Large hydrogen projects do not rely only on global energy firms. Local and regional businesses also play an active role by supporting daily operations, construction, and long-term services across the value chain.
- Equipment supply and parts manufacturing – Local firms can provide pumps, valves, storage tanks, electrolyser components, steelwork, and other equipment for construction and operations.
- Transport and logistics services – Handling project cargo, moving heavy equipment from port to site, and transport planning will be needed as plants are built.
- Construction and site support – SMEs can work on civil works, electrical installation, fencing, site utilities and worker housing support.
- Maintenance and technical services – After plants open, regular service of machinery, renewable systems and safety systems will create ongoing demand.
- Hospitality, retail and local supply – Growth of workforce and contractors boosts demand for housing, food supply, transport and business services in Duqm’s community.
Technology and Infrastructure for Green Hydrogen Production
Green hydrogen production depends on a mix of advanced equipment and strong supporting systems working together. In Duqm, these technologies allow clean power to be converted, stored, and moved at scale for local use and export.
- Electrolysers for hydrogen production – Devices that use electricity to split water into hydrogen and oxygen. Types include alkaline, PEM, and solid-oxide, each with distinct cost and performance characteristics.
- Renewable energy integration – Solar panels and wind turbines supply clean electricity to electrolysers, lowering carbon emissions and production costs.
- Hydrogen storage systems – Compressed gas, liquefied hydrogen and material‑based methods store hydrogen safely until it’s needed.
- Power‑to‑X conversion – Hydrogen can be converted into other energy carriers, such as green ammonia, using synthesis systems, including Haber‑Bosch reactors.
- Energy management tech – Control systems and hybrid renewables (with batteries) help match variable clean power to hydrogen production needs.
Regulatory and Licensing Pathway for Hydrogen Projects in Duqm
Oman has established a clear process for permits and licences to help investors establish hydrogen projects in the Duqm Special Economic Zone (SEZAD). The hydrogen sector is now coordinated by Hydrom, the national agency that oversees auctions and project integration.
Investors start with the Single Permit System, which provides a single approval upon land allocation, eliminating the need to obtain separate licenses from multiple ministries and authorities. Many investors engage investment advisory services in Oman to assess regulatory requirements and structure their projects efficiently. Projects must comply with SEZAD land-use rules and industry standards, including environmental and safety regulations, before construction begins. After the award, developers work with Hydrom and OPAZ to align their plans with the national hydrogen framework, obtain building and utility permits, and ensure ongoing reporting and monitoring are in place.
Challenges and Risk Considerations for Hydrogen Investment
Investing in hydrogen projects in Duqm offers huge potential but comes with several challenges that every investor should consider. Understanding these risks early helps in planning and securing a successful, sustainable project.
- High capital costs – Building large plants, electrolysers, storage, and export systems requires substantial upfront funds, which can slow deals or deter financiers. Public‑private partnerships and risk‑sharing financing can help spread this burden.
- Technology hurdles – Electrolysers and storage technologies remain costly and require higher efficiency and durability. Investing in R&D and staged deployment lowers tech risk.
- Environmental limits – Harsh desert heat, dust, and the need for high-purity water drive maintenance and additional costs. Planning for robust site design and reliable water supply reduces these pressures.
- Market and off‑take uncertainty – A lack of long‑term hydrogen buyers can make projects difficult to bank. Securing early contracts and government offtake guarantees improves bankability.
- Infrastructure gaps – Pipelines, storage and refuelling networks are not fully built, which can delay operations. Coordinated infrastructure planning and incentives for shared usage help fill these gaps.
Unlock Duqm Hydrogen Growth with Finsoul Network Oman
Finsoul Network Oman offers support for investors and SMEs interested in green hydrogen projects in Duqm. We connect you with auction insights, investment entry points, and SME value‑chain roles so your business can compete confidently. Whether you’re exploring land bids, partnerships, or supply‑chain opportunities, we help you prepare proposals and find workable pathways to participation. Partner with us to stay informed as Oman expands green hydrogen capacity and draws global capital into the Duqm zone.
Email: info@finsoulnetwork.com
Phone: +968 7733 8545
Conclusion
Green hydrogen in Duqm presents real chances for investors and local firms as Oman builds an export‑oriented energy hub. With structured auctions, renewable resources, and SME pathways, the region is set to become a key part of the clean energy era. Finsoul Network Oman supports your journey into this evolving market with insights and connections to opportunity.
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