OQ Alternative Energy (OQAE) and Asyad Group have signed an offtake term sheet to explore the use of green hydrogen for mobility applications in Oman, linking the country’s emerging hydrogen capabilities with low-carbon transport solutions.

Under the agreement, Asyad will explore using green hydrogen produced through OQAE’s deployment project in Duqm, supporting the development of hydrogen-powered mobility and the foundations of a domestic hydrogen mobility ecosystem.

“The next phase of Oman’s hydrogen journey is about moving from potential to practical application. This partnership with Asyad is an important step in that direction, connecting green hydrogen production with a real mobility use case and creating an opportunity to build experience across the full value chain,” said Salim Al Kamyani, CEO of OQ Alternative Energy. “At OQ Alternative Energy, we see demonstration projects such as this as essential to building the capabilities, infrastructure and market confidence required for the hydrogen economy to scale. By working with strategic partners such as Asyad, we can experience technologies and business models in real operating environments, generate local knowledge and identify the conditions needed for broader adoption.”

He explained: “Oman has significant potential to become a competitive producer and exporter of renewable energy and green hydrogen. At the same time, developing a strong domestic market is critical to building a resilient hydrogen ecosystem. Our ambition is to help create an environment where Oman’s hydrogen potential can translate into competitive projects, new industries and sustainable value for the nation.”

Ahmed Al Bulushi, CEO of Asyad Drydock & Infrastructure Services, said: “Decarbonising transport requires practical solutions that can be deployed at scale and supported by a reliable energy ecosystem. Our collaboration with OQAE provides an opportunity to explore green hydrogen as part of that transition and to translate Oman’s emerging hydrogen capabilities into applications across the logistics and mobility value chain. Asyad is committed to supporting the development of more sustainable logistics solutions and to strengthening Oman’s position as a globally connected logistics hub. By participating in the development of hydrogen mobility solutions, we are helping build the operational experience, partnerships and infrastructure needed to support the next generation of low-carbon transport in the Sultanate.”

OQAE’s project is its first end-to-end green hydrogen deployment initiative and is designed to develop capabilities across renewable power integration, hydrogen production, operations, certification, handling and commercialisation.

It is expected to produce up to 400 kilograms of green hydrogen daily, with potential expansion through a dedicated hydrogen refuelling station in Duqm.

Located in the Special Economic Zone at Duqm, the project will connect renewable energy, hydrogen production and end-use applications within an industrial and logistics ecosystem.

The initiative supports Oman Vision 2040 and the country’s net-zero ambitions while generating practical experience in safety, certification, infrastructure and demand.

The term sheet marks the next stage of cooperation as OQAE and Asyad work towards a deployment framework and future commercial-scale hydrogen mobility projects. -OGN/TradeArabia News Service