Signing of Land Use Agreement for Phases Two and Three of ACME Green Hydrogen Project in Duqm

The Public Authority for Special Economic Zones and Free Zones OPAZ, Hydrogen Oman (Hydrom), and ACME Group signed (May 18, 2025) the project development and land usufruct agreements for the second and third phases of the ACME green hydrogen and green ammonia project in the Special Economic Zone at Duqm.

This signing officially brings the project under Hydrom's regulatory framework, enhancing the integration of major commercial projects and paving the way for the next stage of implementation.

The agreements were signed by H.E. Eng. Salim bin Nasser Al Aufi, Minister of Energy and Minerals and Chairman of Hydrom; H.E. Sheikh Dr. Ali bin Masoud Al Sunaidy, Chairman of the Authority; and Gursharan Jassal, Country Manager for ACME in Oman.

Phases two and three of the project will cover an area of 80 square kilometers, with each phase expected to produce approximately 71,000 tons of green hydrogen and 400,000 tons of green ammonia annually. This signing follows the commencement of the first phase, which will produce 100,000 tons of green ammonia and is supported by an offtake agreement with Norway’s Yara company. Upon completion of all phases, the project aims to reach an annual production capacity of 0.9 million tons of green ammonia.

Eng. Abdulaziz Al Shidhani, Managing Director of Hydrom, stated:
“This signing represents another pivotal step in Hydrom’s roadmap to expand its integrated portfolio of green hydrogen projects in Oman. The inclusion of one of the earliest hydrogen initiatives under the national framework overseen by Hydrom not only aligns previous efforts with regulatory standards but also underscores Hydrom’s commitment to organized, scalable development. This move reinforces investor confidence and strengthens Oman’s position in the global hydrogen market.”

He added that the signing comes at a time when Oman’s hydrogen sector is witnessing rapid progress, driven by Hydrom’s ongoing third land bid round. With the national portfolio taking shape and the enablers of regulation, infrastructure, and human resources advancing on a clear path, the sector is moving steadily toward meeting global demand and establishing Oman as a reliable long-term source of green hydrogen.

Eng. Ahmed bin Ali Akaak, CEO of the Duqm Special Economic Zone, said:
“The agreement reflects the zone’s success in attracting green hydrogen and green ammonia projects. It highlights the growing interest in the sector within the Duqm strategy (2025–2030) and aligns with Oman Vision 2040 and the Sultanate’s goal to achieve carbon neutrality by 2050.”

Gursharan Jassal, Country Manager for ACME in Oman, added:
“These important agreements for the next development phase of the green ammonia project in Duqm mark a crucial step in supporting Oman’s efforts to create a sustainable energy future. This partnership reflects our joint commitment to contributing to the goals of Oman Vision 2040 and strengthening the country’s role in the global green hydrogen economy.”

Following this agreement, the number of green hydrogen projects awarded by Hydrom in Al Wusta and Dhofar governorates rises to nine projects, with a total investment exceeding USD 50 billion and a combined production capacity of approximately 1.5 million tons of green hydrogen annually by 2030. These projects rely on nearly 35 gigawatts of renewable energy, within a unified national framework that enables large-scale implementation and meets growing global demand.

With its expanding portfolio, Hydrom continues to position Oman as one of the most advanced and ready hydrogen ecosystems in the world.