30 Apr Interview with Eng. Abdulaziz Al Shidhani, Managing Director Hydrom, Oman
Hydrom was established to position Oman as a global leader in green hydrogen, in alignment with Vision 2040 and the country’s 2050 net-zero goals. What is Hydrom’s long-term vision for Oman’s green hydrogen sector, and how do you see it evolving and contributing to the Oman Vision 2040?
Hydrom was officially launched in 2022 by royal directive to lead Oman’s green hydrogen (gH2) strategy execution. As the national orchestrator, its mandate includes setting the strategy and advising the government on policies and legal framework for the hydrogen sector in addition to delineating government-owned lands earmarked for hydrogen. Hydrom is also responsible for structuring large-scale ventures, managing the allocation process to developers and enabling the development of shared infrastructure and related industrial hubs.
In November 2022, Hydrom launched Oman’s first gH2 auction round, focused on the Duqm region, successfully concluding with the signing of two 47-year contracts with international consortia. To ensure a fully integrated ecosystem, Hydrom either addressses gaps directly or engages in stategic partnerships. In parralel, we launched a separate workstream called “legacy initiatives” to collaborate with developers who had already identified land, provided they aligned with regulatory frameworks. Through this approach, we signed three additional projects in Duqm, bringing the total to five consortia with diverse investors from Europe, Asia, and Oman, including OQ. In June, we opened new opportunities in Dhofar, successfully closing Round Two with two public auction signings and one legacy initiative. Japanese companies played a key role, with Marubeni leading the SalalaH2 legacy project in Salalah and J-Power joining EDF Group in a publicly awarded bid.
Our roadmap is divided into three phases. The first phase (2025-2030) focuses on project launches, securing offtake agreements and establishing long-term hydrogen production and consumption deals. The second phase (2030-2040) is expanding our role and creating more local opportunities. The third phase (2040-2050) is a full-scale integration of hydrogen into Oman’s energy economy. Our vision is to position Oman as a global green hydrogen hub, while our mission is to maximize economic value through this sector.
A royal decree on February 16, 2023, allocated 50,000 km² of land for gH2 projects, requiring approval from the Ministry of Energy and Minerals for any future use. This long-term commitment provides investors with the confidence to plan infrastructure development with certainty. As part of our mandate, we introduced new concepts to enhance Oman’s green hydrogen sector. A key initiative is the development of a common-use infrastructure, designed to help reduce project costs. Another focus is improving the ease of doing business. A major milestone was launching the Green Hydrogen Acceleration Dashboard to track sector-wide progress. One of the most impactful reforms was introducing the single permit system—once a contract is signed, investors are automatically granted land access through the Invest Oman platform, eliminating the need for multiple approvals. We are also addressing logistial challenges, particularly the large-scale import of wind turbines and solar panels. To streamline transport, we approved a control tower led by our logistics partner, ASYAD, to coordinate oversized cargo movement from the Port of Duqm to project sites, while ensuring smooth integration with existing oil and gas operations.
Looking ahead, we remain committed to Oman’s green hydrogen ambitions. With Round Three approaching, we see continued investor interest and believe Oman has a compelling green hydrogen story to tell.
With many nations competing to establish themselves as leaders in green hydrogen, Oman has a unique opportunity to leverage its geographical advantages and renewable energy resources. How does Oman differentiate itself as a competitive global player in the green hydrogen market and what factors give the country an edge over other hydrogen-producing nations?
Oman has a competitive advantage, geographically, it provides direct to trade routes without passing through the Strait of Hormuz—an important selling point. We are close to internationally operated ports, including Salalah, with a strong global track record. The country also has vast uninhabited lands with year-round solar and wind potential, enabling high renewable output at globally competitive costs.
What was missing was a clear vision and regulatory framework—both of which have now been established through Hydrom. This has instilled confidence in investors, helping Oman secure a leading position in green hydrogen in just two years.
Since Vision 2040, Oman has made significant strides in enhancing its business environment, including reforms to labor and investment laws that ease investor operations. With over 50 years of experience in oil, gas, and other industries, Oman has a long history of honoring its commitments. We understand how to build and sustain strategic, long-term partnerships, a a strength rooted in our 2,000-year trading heritage. Openness, respect, and coexistence are part of our national identity, and sinvestors quickly recognize when they come to Oman.
Recently, Oman’s Ministry of Energy and Minerals and Japan’s Ministry of Economy, Trade, and Industry signed a MoU with the Japan Organization for Metals and Energy Security to strengthen cooperation in crude oil, natural gas, and clean energy. With these new agreements reinforcing Oman’s collaboration with Japan, what key markets is Oman targeting for hydrogen exports, and how is Hydrom fostering international partnerships to ensure long-term demand and a stable hydrogen supply chain?
Japan is a strategic partner for Oman, and this relationship has gained momentum over the past two years. The MoU signed with Japan’s Ministry of Economy, Trade and Industry (METI) and JOGMEC has established a strong framework for clean energy collaboration. Since then, high-level government exchanges have taken place, and Japanese investment in Oman’s power, logistics, and hydrogen sectors has continued to grow. Companies such as Marubeni, Mitsubishi, and J-POWER have expanded their presence, supported by export credit agencies including JBIC.
Unlike many symbolic agreements, this MoU is being actively implemented. Two Japanese firms are already engaged in Oman’s hydrogen program, with regulatory discussions and technical planning underway, translating the agreement into real-world progress.
Green hydrogen is expected to play a critical role in Oman’s commitment to achieving net-zero emissions by 2050. How is Hydrom ensuring that its projects align with Oman’s sustainability goals, and what measures are being taken to maximize the environmental benefits of hydrogen production?
Oman has long depended on oil and gas, but Vision 2040 recognizes the need for economic diversification. Fortunately, just as Oman was blessed with fossil fuels, it also has ideal conditions for producing low-cost green hydrogen. From the start, our goal was not just to export hydrogen but to create a broader impact. A policy consensus led to five strategic objectives, with two key priorities. The first one is energy security. Oman will continue meeting local demand while ensuring a reliable global energy supply, particularly for industrialized nations like Japan, where we already supply oil and gas. Second is competitiveness. We must remain cost-effective in this evolving energy landscape. Every aspect—from processes to regulations and incentives—is continually optimized to keep Oman among the world’s lowest-cost green hydrogen producers. Third is decarbonization. A month before Hydrom’s launch, His Majesty committed to net-zero emissions by 2050, with hydrogen playing a crucial role. It offers reliable energy storage, supports the shift from gas to hydrogen turbines, and serves mobility, industry, and power sectors. Fourth is foreign investment. Oman aims to attract FDI through partnerships. As a first mover, we take risks, but this also cements investor commitment—once companies establish here, they are unlikely to move elsewhere. Fifth is the long-term economic impact. Beyond energy, our strategy focuses on capability building, R&D, and industrial growth. Our bidding process prioritizes strong, experienced partners committed to Omanization, local manufacturing (e.g., electrolyzer factories), and expanding research collaborations. This aligns with Vision 2040, supporting economic diversification, environmental sustainability, and skilled job creation—an attractive alternative to traditional low-cost labor industries.
Do you have any closing remarks for our readers who are considering visiting or investing in Oman?
In December 2024, Hydrom hosted the Green Hydrogen Investors Day (GH2 Investor Day), attended by 400 stakeholders. This event served as a matchmaking platform for technology providers, financiers, and developers, resulting in over 870 meetings. During the event, His Excellency, Eng. Salim Al Aufi, the Minister and Chairman of Hydrom, announced that Oman is moving forward with its green hydrogen journey, emphasizing the opportunity to capture market share and the importance of maintaining momentum. We are actively sounding the market, conducting one-on-one meetings, webinars, and conference participation to gauge investor interest and explore how Oman can differentiate itself to attract further investment. We are exploring new formats, including potentially smaller block sizes to attract a wide-range of investors. This approach aligns with market demand and investor capabilities. We plan to open round three by the end of April, aiming to receive bids by Christmas, with contracts awarded in early 2026.
Our message is clear: Oman is open, ready, and committed to leading the next chapter of the global energy transition. We welcome companies that share our vision and are ready to grow with us.