Muscat: India’s ACME Group signed new agreements with Oman’s Hydrom on Sunday to advance its green hydrogen and ammonia projects in Duqm, marking a major step in the Gulf nation’s strategy to become a global hub for clean energy, reports Zawya.
The Project Development and Usufruct Agreements formally bring ACME’s Phase 2 and 3 projects under Hydrom’s national hydrogen framework. Together, these phases will cover 80 square kilometres in the Special Economic Zone at Duqm (SEZAD), and each phase will produce 71,000 tonnes of green hydrogen and 400,000 tonnes of green ammonia annually.
“This agreement represents a major step toward a cleaner and more sustainable energy future for Oman,” said Gursharan Jassal, ACME’s Country Manager in Oman. He added that the deal underscores the company’s confidence in Oman’s long-term green energy strategy.
ACME’s first-phase facility, already under construction in Duqm, is expected to produce 100,000 tonnes of green ammonia per year and is backed by an offtake deal with Norway’s Yara International. Production is scheduled to start in the first quarter of 2027. Phase 2 is planned for 2028–2030, and Phase 3 for 2030–2033.
Phase 1 has reached financial closure with funding from India’s Power Finance Corporation. ACME is now working on finalising offtake and financing arrangements for Phase 2. The company plans to export green ammonia primarily to Europe and Far East Asia.
“Oman ranked highest in our global simulations for lowest-cost hydrogen and ammonia production,” said Jassal, citing this as a key factor in ACME’s investment decisions.
From Hydrom’s side, Managing Director Abdulaziz al Shidhani said integrating ACME’s projects into the national hydrogen portfolio strengthens investor confidence and regulatory alignment. “It’s a positive message to the market that Oman is continuing to award new projects and build the green hydrogen ecosystem,” he said.
Hydrom’s total portfolio now includes nine large-scale projects in Al Wusta and Dhofar, with combined investments topping $50 billion. The projects aim to produce 1.5 million tonnes of green hydrogen annually by 2030 and will require about 35 GW of renewable energy.
Al Shidhani noted that the timing of the ACME agreement supports Hydrom’s ongoing third land auction round and is expected to attract further investor interest.
