Wednesday 13 / August / 2025
Muscat: Hydrom has announced new fiscal incentives designed to enhance the commercial viability of projects that will be awarded through the ongoing third green hydrogen auction round.
The measures represent a targeted response to a market sounding exercise conducted by Hydrom earlier this year and evolving global market dynamics, reaffirming the country’s position as one of the world’s most structured and investment-ready hydrogen ecosystems.
The new incentive includes a 90% reduction in land lease fees during the development stage with potential for further relief during the Front-End Engineering Design (FEED) phase, alongside significant reductions in base royalties during the initial years of production, and Corporate Tax exemptions for up to 10 years. Together, these measures are designed to support early-stage project economics, improve internal rates of return, and facilitate accelerated progress towards final investment decisions.
Eng. Abdulaziz Al Shidhani, Managing Director of Hydrom said. “The global hydrogen landscape is entering a phase of consolidation, with developers prioritizing jurisdictions that provide regulatory certainty, strong project economics, and credible offtake potential. The newly introduced incentives reflect Hydrom’s proactive approach to evolving market dynamics, reaffirming Oman’s position as a delivery-focused, investment-ready destination for large-scale hydrogen development.”
Designed with flexibility, transparency, and scalability at its core, Oman’s third auction round is progressing with strong momentum, offering a land block of up to300 square kilometers in Duqm and inviting proposals for projects covering a minimum of 100 square kilometers. Bidders have the flexibility in defining their project footprint within the block, enabling tailored configurations that align with individual development strategies and market requirements.
To date, almost 100 registrations have been received from major industry players and consortia across the green hydrogen value chain. This strong market response underscores a sustained appetite for structured, policy-backed green hydrogen development opportunities. Round 3 continues to attract serious first movers and institutional investors seeking to scale up operations in a competitive and structured environment.
The Statement of Qualification (SoQ) submission window remains open until 31 October 2025, and Hydrom encourages all interested parties to register and submit their documents via the dedicated platform. To support the formation of strong consortia in Round 3, Hydrom will launch an updated consortium matchmaking list, an established tool that has successfully connected qualified participants seeking strategic project partnerships.
