Oman announces fiscal incentives for the readiness of green hydrogen projects under the third auction round to ensure their successful execution.
In a bid to attract investors and accelerate the development of green hydrogen projects, the Sultanate of Oman has announced significant incentives for its third green hydrogen auction round.
The new incentives, designed to support early-stage project economics and improve internal rates of return, include a 90% reduction in land lease fees during the development stage, with potential for further relief during the Front-End Engineering Design (FEED) phase. Investors can also expect corporate tax exemptions for up to 10 years and significant reductions in base royalties during the initial production years.
Moreover, investors in Round 3 are uniquely allowed to sell surplus renewable electricity into the market, creating an additional revenue stream and improving project economics and bankability.
The auction offers a land block of up to 300 square kilometers near the Special Economic Zone at Duqm (SEZAD). Proposals must cover a minimum of 100 square kilometers, with bidders given flexibility to define their project footprint within this block to align with their development strategies and market needs.
Interested parties must submit their Statement of Qualification (SoQ) by October 31, 2025, via the dedicated registration platform. Hydrom, the master planner of Oman’s hydrogen strategy, encourages registration and submission ahead of this deadline.
These measures aim to accelerate progress toward operational projects by the end of 2032, strengthen Oman's position as an investment-ready green hydrogen market, and support scalable, flexible project development.
In addition, Hydrom will launch an updated consortium matchmaking list to facilitate the formation of strong partnerships for Round 3. Over 90 registered parties, including major industry players and consortia, have shown interest in Oman's third green hydrogen auction round.
The third auction round in Oman is progressing with strong momentum, reaffirming the country's position as one of the world's most structured and investment-ready hydrogen ecosystems.
For more general information about Hydrom and the auctions, visit www.hydrom.om.
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