Green hydrogen project in Oman expects $8bn investment

The HyDuqm green hydrogen project in Oman, led by a consortium of France’s Engie and South Korea’s Posco, expects to attract $7 billion to $8 billion in investment to reach full capacity, a news report has revealed.

The consortium has secured a 340 sq km block in Duqm on the coast in central Oman.

The concession is one of eight land blocks awarded by Hydrogen Oman SPC (Hydrom), a subsidiary of Energy Development Oman, for international developers.

The project includes up to five gigawatts (GW) of new wind and solar capacity and a renewable hydrogen plant producing up to 200,000 tonnes per annum (tpa), the Oman Daily Observer reported.

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Duqm aims to produce 1 million tpa of renewable hydrogen by 2030, requiring an estimated $35 billion in investment, the newspaper reported, quoting Hyerin Park, vice-president for hydrogen business development at, Engie Asia Middle East and Africa, who was speaking at forum held last week.

“Investors are hesitant to fund projects where risks are overly concentrated, making public-private partnerships and policy-driven risk mitigation essential for bankability,” she said.

Government-backed incentives, such as loan guarantees and subsidies, are essential in bridging the financing gap, Park said.

HyDuqm plans to supply green ammonia to South Korea to decarbonise coal-fired power plants, leading to stable long-term demand.

More clarity on hydrogen pricing structures and long-term contracts are needed to improve financial predictability, making projects appealing to investors, Park said.