Antalya: The agreements were announced during Oman’s participation in the COP31 climate summit in Antalya, Türkiye, alongside the launch of the fourth round of public tenders for green energy projects aimed at meeting the growing electricity demand from AI data centres.

The first agreement was signed with a consortium comprising Oman’s PetroGas Exploration and Production and Italy’s Bio3 Energy SRL. The second agreement involves PLN Indonesia Renewable Energy, Oman’s Alawi Projects and Singapore’s HBA Offshore International Pte. Ltd.

The first project aims to produce approximately 625,000 tonnes of green ammonium nitrate annually by 2032, using around 50,000 tonnes of green hydrogen per year and 1.16 gigawatts of renewable energy capacity.

The second project will focus on producing approximately 400,000 tonnes of green ammonia annually for export, supported by 1.45 gigawatts of solar power capacity and 1 gigawatt of electrolyser capacity.

Eng. Abdulaziz bin Saeed Al Shidhani, General Manager of Hydrogen Oman (Hydrom), said the two projects were awarded under a more flexible and competitive investment framework, incorporating lessons from previous bidding rounds and investor feedback.

He emphasised that efforts would continue to improve the commercial viability of green hydrogen projects while developing downstream industries and encouraging local consumption.

Highlighting the growing energy requirements of the digital economy, Al Shidhani said the fourth tender round aims to connect renewable energy and green hydrogen development with the electricity needs of AI data centres.

The new round includes an investment opportunity in Dhofar Governorate to establish integrated renewable energy and green hydrogen projects, with data centres serving as the primary buyers of the electricity generated. Investor registration will remain open until February 2027.

Dr. Sima bint Saadi bin Nasser Al Kaabi, Director General for Sector Stimulation and Future Skills at the Ministry of Transport, Communications and Information Technology, said Oman is leveraging its international connectivity through the Digital Triangle project to strengthen its position as a destination for artificial intelligence and cloud computing investments.

She stressed the importance of reliable, sustainable electricity supplies for these facilities, highlighting the potential role of green hydrogen in improving energy stability.

Kingsuk Sun, CEO of PetroGas Group, described the agreement as a significant milestone in Oman’s ambition to become a global leader in green hydrogen. He reaffirmed the group’s commitment to working with its partners and Hydrom to generate long-term sustainable value in line with Oman Vision 2040 and the country’s net-zero emissions target for 2050.

Meanwhile, Hendri Asdayuka Putra, CEO of PLN Indonesia Renewable Energy, praised Oman’s clear regulatory framework for green hydrogen development and highlighted Duqm’s advantages, including abundant solar and wind resources, integrated ports and established industrial infrastructure.

The consortium, working alongside HBA Offshore International and the Zawawi Group, also reaffirmed its commitment to developing Omani talent, increasing local supplier participation and establishing new industries in Duqm, while strengthening energy cooperation between Oman and Indonesia.

Oman is expected to begin its first commercial green hydrogen production in 2027, with construction progressing on the initial phase of the Acme Group’s green hydrogen and ammonia project in Duqm.

Hydrom has also completed the master plan for shared infrastructure across the sector, while preliminary engineering design studies are underway to support future development.