Oman’s HyDuqm green hydrogen project, led by France’s Engie and South Korea’s Posco, is expected to bring in investments between $7 billion and $8 billion as it moves towards full capacity. This large-scale project is a key part of Oman’s plan to boost hydrogen production, according to a report by the Oman Daily Observer, reports Energetica India.
The project has been allocated a 340 sq km land area in Duqm, a coastal region in central Oman. This land is one of eight blocks given to international developers by Hydrogen Oman SPC (Hydrom), a subsidiary of Energy Development Oman (EDO), to promote green hydrogen production. The HyDuqm project will use up to 5 GW of wind and solar energy to produce 200,000 tonnes of hydrogen each year.
The project supports Oman’s goal of producing 1 million tonnes of renewable hydrogen annually by 2030. Reaching this target will require around $35 billion in total investment, showing the scale of funding and infrastructure needed.
Hyerin Park, Vice-President for Hydrogen Business Development at Engie Asia, Middle East, and Africa, stressed the need for balanced risk-sharing to attract investors. Speaking at a recent industry event, she noted that investors prefer projects where risks are not concentrated on one side, making government and private sector cooperation essential.
To address funding challenges, she also highlighted the importance of government-backed support such as loan guarantees and subsidies. The long-term success of HyDuqm and similar projects will depend on financial stability, clear pricing for hydrogen, and long-term supply agreements.
HyDuqm is expected to support South Korea’s clean energy efforts by supplying green ammonia, which can be used as an alternative to coal in power plants. This long-term agreement will help create a steady demand for Oman’s hydrogen exports.
With several large hydrogen projects in progress, Oman is positioning itself as a major player in the global hydrogen industry. As demand for green hydrogen and ammonia increases worldwide, projects like HyDuqm will help reduce carbon emissions while making use of Oman’s renewable energy resources.
The success of the project will depend on continued policy support, investment clarity, and global demand for hydrogen. With the right support, Oman could become a key supplier of clean energy for the world.
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