To speed up final investment decisions (FID), Hydrom will offer a 90% reduction in land lease fees during the development stage, with the discount potentially extended or increased during the engineering phase.
Additionally, Hydrom will offer significant base royalty reductions in the early years of production and corporate tax exemptions for up to 10 years.
Under its third auction round, Hydrom is offering a 300km land block in Duqm and inviting proposals for projects covering a minimum of 100km. Developers can choose their footprint within the block.
Successful participants will also be able to explore selling excess renewable electricity from their developments to boost project value.
Over 100 major industry players and consortia have already registered.
H2 View understands that the Statement of Qualification (SoQ) window is open until October 31, 2025.
The bidding process began in April 2025, while final awards are expected in Q2 2026. Initial projects could begin construction by 2027.
In its first two auctions, Hydrom awarded eight projects in Duqm and Salalah with a combined potential of up to 1.2 million tonnes of green hydrogen annually.
According to the IEA, Oman’s lowest cost of hydrogen (LCOH) could hit $1.6/kg by 2030, comparable to grey hydrogen today.
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