Oman’s First Green Ammonia Project Advances Towards Operations as High-Level Delegation Visits Duqm

Oman’s first commercial-scale green ammonia project is progressing towards operations, as a high-level government delegation visited ACME Group’s development at the Special Economic Zone at Duqm (SEZAD) to review construction progress and the infrastructure supporting the Sultanate’s emerging green hydrogen industry.

The delegation, representing the State Financial and Administrative Audit Institution (SFAAI), was accompanied by senior officials from Hydrogen Oman (Hydrom) and Indian renewable energy developer ACME Group.

Among those participating were Ahmed bin Ibrahim Al Maawali, Director General of Energy and Minerals Audit; Eng. Abdulaziz bin Said Al Shidhani, Managing Director of Hydrom; and Gursharan Jassal, Regional Director of ACME Group in Oman, alongside technical specialists.

The visit highlighted the progress achieved in developing integrated renewable energy, hydrogen production and ammonia processing infrastructure as the project approaches its anticipated operational phase.

From Hydrogen Ambitions to Industrial Development

During the visit, Al Shidhani highlighted the transformation of the Duqm project from initial planning and site preparation into a substantial industrial development.

He reaffirmed Hydrom’s commitment to supporting the project as it progresses towards full operations in the coming months.

The delegation reviewed the different components of the development, including the integration of renewable electricity generation, green hydrogen production and the conversion of hydrogen into ammonia for international export markets.

Hydrom identified the project as an important example of Oman’s green hydrogen sector progressing from strategic planning to physical implementation.

Planned Phase 1 project specifications, as reported by Oman Observer.

The first phase of ACME Group’s Duqm development is designed to produce 100,000 tonnes of green ammonia annually, supported by solar photovoltaic generation and battery storage infrastructure.

The project also includes dedicated hydrogen production facilities and ammonia export infrastructure, establishing an integrated renewable energy-to-ammonia supply chain.

Financing for the first phase has been secured, including a loan equivalent to $500 million from Indian state-owned infrastructure financier REC.

The project has also secured a long-term commercial offtake arrangement with Norway-headquartered Yara, which has committed to purchasing the entire planned annual green ammonia output from Phase 1.

This agreement provides an established international customer for the project’s initial production capacity and strengthens its commercial foundation.

 

Expansion Plans Target Major Growth by 2030

Beyond the initial development, ACME Group is preparing to expand its Duqm green ammonia complex through additional production phases.

Global investment firm Brookfield has proposed investing up to $600 million in ACME’s green molecules business, with part of the investment intended to support the next phase of the Oman development.

Phase 2 is designed to produce approximately 71,000 tonnes of green hydrogen and 400,000 tonnes of green ammonia annually by 2030.

A third phase of similar scale is targeted for 2033, with the two expansion phases together representing an estimated investment of $4.2 billion.

Once Phase 2 reaches its planned capacity, the combined annual green ammonia production capacity of the first two phases would reach approximately 500,000 tonnes.

The proposed expansion would significantly strengthen Duqm’s position as a centre for large-scale renewable hydrogen production and international green ammonia supply.

Positioning Duqm as a Green Energy Export Hub

The ACME development reflects Oman’s broader strategy to establish a competitive green hydrogen industry while diversifying its industrial economy under Oman Vision 2040.

By combining renewable electricity generation, hydrogen production, ammonia conversion and export infrastructure, the project demonstrates the infrastructure required to develop commercially viable hydrogen supply chains.

The long-term offtake arrangement with Yara also illustrates the importance of securing international demand alongside investment in production capacity.

As the first phase approaches operations and subsequent phases progress through development, the Duqm project is expected to play an important role in demonstrating Oman’s ability to translate its renewable energy potential into export-oriented industrial activity.

The latest government visit underscores the project’s strategic significance as Oman advances its ambition to become a major participant in the global green hydrogen and ammonia market.

High-level delegation tours Oman’s first green ammonia project - Oman Observer