The Sultanate of Oman, through Hydrom — the orchestrator of the national Green Hydrogen Strategy — has announced a package of new fiscal incentives aimed at improving the commercial viability of projects to be awarded in its ongoing third green hydrogen auction round.
The measures respond to feedback from a market sounding exercise conducted earlier this year, as well as shifting global market dynamics, and reinforce Oman’s position as one of the world’s most structured and investment-ready green hydrogen ecosystems.
Key incentives include a 90% reduction in land lease fees during the development stage, with potential additional relief during the Front-End Engineering Design (FEED) phase. Developers will also benefit from substantial reductions in base royalties during the early years of production, along with corporate tax exemptions of up to 10 years. Collectively, these initiatives aim to enhance early-stage project economics, improve internal rates of return, and accelerate progress toward final investment decisions.
Oman’s third auction round offers up to 300 square kilometres of land in Duqm, with individual projects required to cover at least 100 square kilometres. Developers have flexibility to define their project footprint within the block, enabling tailored configurations that align with specific strategies and market requirements.
The auction continues to attract strong interest, with nearly 100 registrations from major industry players and consortia spanning the green hydrogen value chain. This response reflects growing investor confidence in Oman’s structured, policy-backed approach to large-scale renewable hydrogen development.
The Statement of Qualification (SoQ) submission window remains open until 31 October 2025. Hydrom encourages interested parties to register and submit documents via its dedicated platform.
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