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Hydrogen teams prepare Oman land block bids

16 February 2023

Consortiums and individual companies are preparing to bid by 15 March for the land blocks being auctioned for integrated green hydrogen projects in Oman.

The client, Hydrogen Oman (Hydrom), is understood to have received statements of qualification (SOQs) from prospective developers to take part in the auctions.

MEED previously reported that companies have until 15 March to bid for the land blocks being auctioned by Hydrom.

According to industry sources, the following companies and consortiums have submitted SOQs: 

  • Abu Dhabi National Energy Company (Taqa, UAE) / Masdar (UAE) / Jera (Japan)
  • Alfanar Company (Saudi Arabia) 
  • Acme Group (India)
  • EDF (France)
  • BP (UK)
  • Fortescue (Australia)
  • Korea Electric Power Corporation (Kepco) / Posco / Samsung Engineering (South Korea)
  • Marubeni (Japan) / Linde (France) / Dutco (UAE) / OQ (local)
  • Mitsui (Japan)
  • Shell (Netherlands) / OQ (local) / Intercontinental Energy (Singapore) 
  • Total (France)

Hydrom has yet to officially issue a list of prequalified bidders.

It is understood that not all of these companies or consortiums have purchased the request for proposals (RFP) document for the land block auctions.

The client set a date for interested bidders to propose changes to the project development agreement and sub-usufruct agreement as suggested by the RFP. It expected to receive these by 8 February. 

Hydrom will then reissue the updated agreements by 22 February.

MEED reported in late January that interested companies could still submit SOQs, but the bid deadline would be the same for all bidders.

Phase A of the land auctions will comprise two bid rounds for integrated green hydrogen projects in Duqm and Thumrait.

According to Hydrom, two blocks will be awarded in the Duqm area by the end of the first quarter of 2023, while four blocks will be awarded in the Thumrait area by the end of 2023.

Oman expects winning developers for the first phase of its programme to deliver integrated projects that cover the full green hydrogen value chain. These projects are expected to include:

  • Renewable energy production: wind/solar mix to ensure competitive levelised cost of hydrogen
  • Hydrogen production: could be polymer electrolyte membrane or alkaline electrolysers
  • Hydrogen derivatives conversion: end product, whether hydrogen, ammonia or methanol, among others, is up to the developers
  • Offtaker: Developers are expected to secure offtake for their products

The investor roadshow for the second bid round is expected to be held in April, followed by the qualification phase in May. Contracts for this round are due to be awarded by December.

The planned auctions support Oman’s goal to produce 1 million tonnes a year of green hydrogen by 2030.

Developers are expected to bid as part of consortiums and partner with a government-owned entity after the award.

Hydrom mandate

Hydrom was set up in early 2022 with the directive from Oman’s Sultan Haitham bin Tariq al-Said to structure and accelerate the development of the green hydrogen sector in the country.

Hydrom is wholly owned by Energy Development Oman (EDO) and regulated by the Energy & Minerals Ministry.

EDO’s mandate includes creating a master plan for the sector, including delineating government-owned land areas, structuring associated large-scale green hydrogen projects, managing the process for their allocation to developers and overseeing their execution, as well as facilitating the development of common infrastructure, connected ecosystem industries and hubs.

The sultanate has a rapidly growing green hydrogen and green ammonia pipeline. There are plans to build at least 12 such schemes in Oman, requiring a budget of at least $55bn, MEED’s latest data shows. 

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Jennifer Aguinaldo

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