Hydrom, the authority driving Oman’s national Green Hydrogen Strategy, has announced a fresh set of fiscal incentives aimed at enhancing the commercial viability of projects participating in the country’s third green hydrogen auction round.
The measures reflect feedback from a market sounding exercise earlier this year and respond to evolving global hydrogen market trends, reinforcing Oman’s reputation as one of the world’s most structured and investment-ready hydrogen ecosystems.
Supportive fiscal framework for early-stage projects
The new incentives focus on reducing financial barriers during the critical early stages of project development. Developers will benefit from a 90% reduction in land lease fees during the development stage, with the possibility of further reductions during the Front-End Engineering Design (FEED) phase.
In addition, base royalties will be significantly lowered during the first years of production, and corporate tax exemptions of up to 10 years will be available.
These measures are designed to improve project economics, increase internal rates of return, and accelerate progress toward final investment decisions.
Flexible and scalable auction structure
Oman’s third green hydrogen auction round offers a land block of up to 300 sq km in Duqm, with minimum project sizes set at 100 sq km.
Bidders have the flexibility to define the footprint of their projects within the block, allowing them to tailor development plans to match individual strategies and market needs. This approach ensures both transparency and scalability, attracting a wide range of potential investors and developers.
Strong market interest
The auction has already drawn significant attention, with nearly 100 registrations from leading industry players and consortia spanning the green hydrogen value chain. This robust response underlines the growing interest in structured, policy-backed green hydrogen investment opportunities.
Round 3 continues to attract first movers and institutional investors eager to establish or expand their presence in a competitive and well-regulated market.
Encouraging participation and consortium building
The Statement of Qualification (SoQ) submission window remains open until 31 October 2025. Hydrom encourages all interested participants to register and submit their documents through the dedicated online platform.
To support the creation of strong project consortia, Hydrom will also release an updated consortium matchmaking list, a tool that has successfully connected qualified participants with strategic partners in previous rounds.
By combining a supportive fiscal framework, flexible auction design, and tools to facilitate collaboration, Hydrom is setting the stage for accelerated growth of Oman’s green hydrogen sector while attracting global investment.
Oman introduces new incentives to boost green hydrogen projects
The new incentives focus on reducing financial barriers during the critical early stages of project development
