MUSCAT: Hydrom, the orchestrator of Oman’s national green hydrogen strategy, has unveiled a new set of fiscal incentives aimed at bolstering the commercial viability of upcoming green hydrogen projects. These measures are part of the ongoing third green hydrogen auction round, which seeks to attract both domestic and international investors to support Oman’s transition toward sustainable energy. The incentives are expected to improve project economics, encourage innovation in hydrogen production technologies, and strengthen Oman’s position as a regional leader in clean energy development.
The new fiscal framework includes tax exemptions, reduced tariffs on imported equipment, and streamlined regulatory approvals to facilitate project execution. By easing financial and administrative burdens, Hydrom aims to make green hydrogen projects more attractive for private sector participation. The approach reflects a growing recognition of the global energy transition and Oman’s ambition to capitalize on its natural resources, including solar and wind potential, to produce green hydrogen at scale. These measures are also designed to accelerate project timelines, reduce upfront investment risks, and ensure long-term profitability for developers.
Industry experts anticipate that the incentives will stimulate competitive bidding in the auction, potentially lowering the cost of green hydrogen while maintaining high standards for environmental sustainability and technological efficiency. The third auction round is particularly significant as it represents a continuation of Oman’s structured approach to building a robust hydrogen ecosystem. The participation of international firms with advanced hydrogen technologies is expected to foster knowledge transfer, create skilled jobs, and support the local economy through ancillary services and supply chain development.
In addition to financial incentives, Hydrom is also focusing on strategic partnerships and public-private collaborations to enhance project viability. The initiative underscores Oman’s commitment to its Vision 2040 sustainability goals, emphasizing clean energy, industrial diversification, and climate resilience. By providing a clear and supportive policy framework, the government aims to attract long-term investments that will help the country reduce carbon emissions, enhance energy security, and position itself as a leading exporter of green hydrogen in the global energy market.
