Hydrogen Oman (Hydrom) has launched the second round of public auction for green hydrogen development in Dhofar Governorate.

Companies from around the world could submit proposals in September, with a bid submission due in January next year. Winners of the second round will be announced by the end of Q1 2024, Hydrom says on its website.

According to CarbonCredits.com, Hydrom is offering participating firms three prime blocks from 340 sq km to 400 sq km especially allotted to green hydrogen production.

Global companies interested in interested in sustainable energy will be able to take advantage of the Dhofar’s renewable energy resources to establish a strong green hydrogen industry in the sultanate.

Interested companies will go through a three-stage evaluation process to ensure a transparent and fair auction, where qualified bidders will help drive Oman’s green hydrogen growth.

Hydrom is an Oman Energy Development subsidiary and was launched in 2022 to lead and manage Oman’s hydrogen strategy.

Six green hydrogen contracts worth $20 billion were then signed with various partners, including BP and Shell.

These first auction deals aim to produce 500,000 tonnes of green hydrogen each year in Oman.

The overall production target has moved up to 1 million tonnes of green H2 by 2030, 3.75 million by 2040, and 8.5 million by 2050, which is more than Europe’s total current H2 demand. If met, Oman will become the world’s 6th biggest exporter of hydrogen by 2030.

Oman’s 2040 hydrogen target is equivalent to 80 per cent of its current LNG exports, while its 2050 goal doubles the volume.

In July 2023, Hydrom revealed that commitments from their green H2 deals increased to $30 billion.

Oman’s hydrogen projects will use electrolysers powered by renewable energy to extract hydrogen from desalinated sea water.

The sultanate has dedicated an area the size of Slovakia to solar power projects to produce green hydrogen. To date, 1,500 sq km of land has been earmarked by Oman for green H2 development by 2030, but this could increase by 40 times.