Powering Duqm: How Oman’s Hyport Project Is Building a Green Hydrogen Industry

Oman has a lot of sun, a lot of wind and a lot of empty land. It also has a long record as a major energy exporter, and the government is now trying to turn those advantages into a green hydrogen industry. Six green hydrogen projects have signed firm agreements with Oman’s authorities, with the national goal of around 1 million tonnes of renewable hydrogen a year by 2030. The project furthest along is Hyport Duqm, which is the case study here. 

The case study: Hyport Duqm

Where and what. Hyport Duqm is planned for the Special Economic Zone at Duqm on Oman’s southeastern coast. It is being developed on 150 km² and will include green hydrogen and green ammonia plants integrated with export infrastructure at the Port of Duqm. The first phase is designed around a 250 to 500 MW green hydrogen facility. 

Who is behind it. The project began as a partnership between OQ, Oman’s integrated energy group, and DEME, the Belgian marine and offshore engineering company. After bp agreed to take a 49 per cent stake and become operator, OQ and DEME each kept 25.5 per cent. That mix of a national energy champion, a marine-infrastructure specialist and a global energy major is typical of how large green molecule projects are being financed and built. 

The regulatory frame. Oman’s hydrogen orchestrator, Hydrom, granted the project a 47-year licence to develop and operate it through a Project Development Agreement. Hydrom also sets the pace: investors get seven years from signing to complete the development phase, and after the Final Investment Decision (FID), about three and a half years are allocated to construction. A fixed timeline like this gives investors more certainty and keeps projects moving. 

Who will buy the output. Green hydrogen only works if there is a buyer. Uniper signed a cooperation agreement with the project to provide engineering services and explore an exclusive offtake of green ammonia. Ammonia is easier to ship than hydrogen, which is why it is the main export carrier for the project. Oman and Belgium have also discussed routing the clean hydrogen and green ammonia into EU countries through the Belgian market. 

Why it matters for low-carbon industry

Hyport Duqm matters beyond its own output, for three reasons.

1. It is a template for a new export industry. Oman’s economy has long depended on hydrocarbons, and green molecules are a way to keep exporting energy while the world decarbonises. Later phases are meant to expand the value chain so Duqm becomes a green hydrogen hub for Oman and the wider region. omanobserver
2. It anchors an industrial zone, not just a plant. The renewable power, electrolysers, ammonia synthesis and port are being planned together, which is the kind of integrated cluster that can attract downstream industries such as low-carbon fuels and chemicals.
3. It shows the model other projects will follow. Hydrom’s licensing, the 150 km² site reservation and the mix of national and international partners are all being tested here first.

Green hydrogen is moving more slowly than the early announcements suggested. Oman’s energy minister has said he expects FID on the first of eight planned projects in 2026 or 2027, with the first phase of Hyport Duqm the most likely to advance. Earlier reporting put the commercial operations date at 2030–2031. Partner commitments also get questioned in a tough market, which is why Hydrom publicly stated that bp remains a committed partner through its continued participation in the project. The next few milestones to watch are detailed engineering, financing and a firm FID. 

Hyport Duqm shows both the promise and the difficulty of building a green molecule industry from scratch: world-class renewable resources and strong government backing on one side, and long timelines, large capital needs and the pressure to secure buyers on the other. How it turns out will say a lot about whether Oman can make the shift from hydrocarbon exporter to clean-energy exporter.