Hydrogen Oman (Hydrom) announced a significant boost to the Sultanate’s green hydrogen ambitions, with India-based ACME Group committing approximately US$4.2 billion to develop the second and third phases of its green hydrogen and green ammonia project in the Special Economic Zone at Duqm (SEZAD).
The investment marks a major milestone for Oman’s rapidly growing green hydrogen sector and further reinforces the country’s strategy to become a leading global producer and exporter of green hydrogen and its derivatives. Additionally, the project supports Oman’s long-term economic diversification goals by attracting large-scale international investments into the renewable energy sector.
Strategic Agreements Formalize Project Expansion
The latest investment follows the signing of Project Development and Usufruct Agreements between Hydrom, the Public Authority for Special Economic Zones and Free Zones (OPAZ), and ACME Group. These agreements formally integrate the project into Oman’s national hydrogen development framework, providing a structured pathway for large-scale project execution and long-term industrial growth.
Expansion to Significantly Increase Green Hydrogen Capacity
As part of the expansion, ACME Group will develop the second and third phases of its green hydrogen and green ammonia complex across a combined area of approximately 80 square kilometers in Duqm. Each phase is expected to produce around 71,000 tons of green hydrogen annually, alongside approximately 400,000 tons of green ammonia per year. Consequently, the project will substantially increase ACME’s overall production capacity and strengthen Oman’s role in the global clean energy supply chain. The expansion builds upon the project’s first phase, which is currently under construction and designed to produce 100,000 tonnes of green ammonia annually.
Facility to Become One of the Region’s Largest Green Ammonia Projects
Upon completion of all three phases, the Duqm facility is projected to achieve a total production capacity of approximately 900,000 tonnes of green ammonia per year. This scale will position the project among the largest green ammonia developments in the Middle East and underscore Oman’s growing importance in the global energy transition. Green ammonia is increasingly viewed as a critical carrier for green hydrogen, offering a practical pathway for storing and transporting clean energy to international markets.
Driving Industrial Development and Economic Growth
According to Hydrom, ACME’s latest investment highlights the increasing confidence of global investors in Oman’s green hydrogen ecosystem. Beyond renewable energy production, the project is expected to stimulate downstream industrial activities, strengthen local supply chains, and support the development of a comprehensive renewable energy value chain. The investment is anticipated to generate employment opportunities, attract additional industrial investments, and contribute to sustainable economic growth across the region.
Oman’s Green Hydrogen Portfolio Surpasses $50 Billion
With ACME’s expanded commitment, Oman continues to accelerate the implementation of its national hydrogen strategy. Hydrom revealed that awarded green hydrogen projects across the Al Wusta and Dhofar Governorates now represent more than $50 billion in planned investments. These projects are supported by nearly 35 GW of renewable energy capacity and collectively target annual production of approximately 1.5 million tonnes of green hydrogen by 2030. The growing project pipeline reflects strong international interest in Oman’s renewable energy sector and the country’s emerging role as a major clean energy hub.
Green Hydrogen Emerging as a Catalyst for Economic Diversification
Hydrom emphasized that green hydrogen is rapidly evolving beyond an energy opportunity and is becoming a key driver of industrial development, foreign investment, and economic diversification. As project activity continues to gain momentum in Duqm and other strategic locations, Oman is building a robust ecosystem that integrates renewable power generation, hydrogen production, ammonia exports, and industrial development.
Supported by a structured project portfolio, favourable investment environment, and enabling regulatory framework, Oman is steadily advancing toward its ambition of becoming one of the world’s leading producers and exporters of green hydrogen and green ammonia.
Supporting the Global Energy Transition
The expansion of ACME’s green hydrogen and green ammonia project represents another important step in the global transition toward low-carbon energy systems. As reported by saudigulfprojects.com, by combining large-scale renewable energy resources with ambitious hydrogen development plans, Oman is positioning itself at the forefront of the emerging green fuels economy while creating long-term value for industry, investors, and local communities.
