Hydrom, OPAZ and ACME Group Sign Agreements to Advance Duqm Hydrogen Project
- 19-May-2025 10:15 PM
- Journalist: William Faulkner
Hydrom, the Public Authority for Special Economic Zones and Free Zones (OPAZ), and the ACME Group have signed a Project Development Agreement and a Usufruct Agreement for the inclusion of Phases 2 and 3 of ACME’s green hydrogen and ammonia project in the Special Economic Zone at Duqm (SEZAD). This signifies the official incorporation of one of Oman’s pioneering hydrogen initiatives into Hydrom’s national portfolio, unifying all commercial-scale hydrogen projects under a single, cohesive national strategy.
The agreements were signed by His Excellency Eng. Salim bin Nasser Al Aufi, Minister of Energy and Minerals and Chairman of Hydrom; His Excellency Sheikh Dr. Ali bin Masoud Al Sunaidy, Chairman of OPAZ; and Mr. Gursharan Jassal, Country Manager of ACME Group in Oman.
Phases 2 and 3 of the ACME project will span a total area of 80 square kilometers. Each phase is expected to yield around 71,000 tonnes of green hydrogen and 400,000 tonnes of green ammonia per year. These phases follow the launch of construction of Phase 1, which has a production target of 100,000 tonnes of green ammonia per year and is supported by an offtake agreement with Yara Birkeland AS. Upon the completion of all three phases, ACME aims to achieve an annual production capacity of 900,000 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 coincide with the launch of Hydrom’s third land auction round, signaling strong ongoing momentum in Oman’s hydrogen development strategy. With the national portfolio now finalized, and significant progress made in regulatory, infrastructure, and human capital development, Oman is moving forward with the coordination and strategic focus needed to meet global offtake demand and achieve its long-term objective of becoming a leading exporter of green hydrogen.
Engineer Ahmed bin Ali Akaak, CEO of SEZAD, emphasized Duqm’s growing importance as a regional hub for green hydrogen and ammonia investments. He stated, “The signing of these agreements highlights the priority we place on the green hydrogen sector in the Special Economic Zone at Duqm as part of our strategic plan for 2025 to 2030. These efforts align with Oman Vision 2040 and the Sultanate’s commitment to achieve net-zero carbon emissions by 2050.”
Mr. Gursharan Jassal, Country Manager for ACME in Oman, said, “We are honored 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. We extend our sincere gratitude to the Public Authority for Special Economic Zones and Free Zones, the Ministry of Energy and Minerals, Hydrom, and SEZAD for their continued support and partnership. Together, we aim to create lasting value for Oman and the wider region as we progress towards a cleaner, more resilient future.”
With the addition of this project, Hydrom’s awarded portfolio of large-scale green hydrogen developments in the Governorates of Al Wusta and Dhofar now totals nine projects. These represent more than \$50 billion in anticipated investment commitments and a combined production capacity of nearly 1.5 million tonnes of green hydrogen per year by 2030. Supported by nearly 35 gigawatts of renewable energy, these projects are coordinated within a unified national strategy to deliver green hydrogen at scale in alignment with global market demand.
By integrating legacy developments, advancing new projects, and launching additional land rounds, Oman continues to strengthen its position as a leading, investment-ready hub for green hydrogen, offering a complete value chain from resources to infrastructure to export.