INTERVIEW: Oman's Hydrom eyes Asia with roadshows for hydrogen offtake deals

Oman's hydrogen agency Hydrom is intensifying its push into Asia, planning roadshows as it seeks to secure the first commercial offtake agreements for the sultanate's low-carbon hydrogen projects, managing director Abdulaziz al-Shidhani told Platts, part of S&P Global Energy, Aug. 29.

Shidhani said Hydrom was seeking partnerships ahead of its third auction round, which opened with a Statement of Qualification deadline of Oct. 31, as it conducted the Oman-Korea Green Hydrogen Investment Forum in Seoul this month.

"These roadshows are designed to transform interest into tangible partnerships and investment," Shidhani said. "In Seoul, our aim was to highlight Oman's unique value proposition: de-risked land that has already been assessed for buildability and environmental suitability."

Shidhani said Oman's abundant solar and wind resources and a transparent auction framework to ensure clarity and long-term security for investors, back the nation's "clean" or low-carbon hydrogen push.

The Seoul forum served as the anchor for Hydrom's South Korean engagement, bringing together senior government, industry and investor representatives, but Shidhani indicated this was the beginning of a broader regional strategy.

"The Asia Pacific region is a priority for Hydrom's outreach, and we are planning further roadshows in China, Japan, and Korea," he said. "Each of these countries is advancing ambitious hydrogen strategies and represents a natural partner for Oman as it develops one of the world's most competitive clean hydrogen hubs."

S&P Global Energy data shows Oman has some 16 projects totaling around 4.54 million mt of low-carbon or renewable hydrogen projected capacity, involving prominent developers such as BP, POSCO, Shell, Korea Southern Power and Hydrom itself.

Promoting third auction

Hydrom introduced opportunities under the Third Green Hydrogen Auction Round, including a concession block of up to 300 square kilometers in Duqm with new fiscal incentives to enhance competitiveness at the Korean roadshow, Shidhani said.

"For [South] Korea, which has established global leadership in EPC delivery, hydrogen technologies, and industrial applications, the forum provided space to explore how Oman's clear framework and competitive resources can align with Korea's technological strengths and industrial demand," he said.

He added that these discussions laid the foundation for consortia bringing together Korean EPCs, SMEs, and technology providers, paving the way for Round Three participation and long-term supply partnerships.

The roadshows would create the opportunity to connect directly with developers and investors as they prepare their bids, he said. They "form part of a broader effort to strengthen Oman's role in Asia's clean energy supply chains while supporting Vision 2040 and the Sultanate's net-zero 2050 target."

Hydrom added financial incentives to the third round of land auctions to enhance the commercial viability of renewable hydrogen projects, including a 90% reduction in land lease fees during the development stage, with potential for further relief during the Front-End Engineering Design phase, it said.

Targeting first offtake deal

Shidhani said South Korea is currently running its Clean Hydrogen Portfolio Standard (CHPS) auction, seeking to contract around 1.3 million mt/year of 'clean' or low-carbon ammonia, which presents a timely opportunity for Oman to participate competitively.

"Our priority is not to set a fixed number, but to secure the first commercial offtake agreements that anchor long-term supply relationships," Shidhani said. "Hydrom's immediate focus is on positioning our projects to play a role in this process and to work towards concluding a first commercial offtake deal with [South] Korea during this auction cycle."

Achieving this goal would mark a significant milestone, signaling the Middle East's emergence as a reliable partner in Asia's clean hydrogen supply chains and creating a strong platform for further engagement with both South Korea and Japan as they advance their hydrogen import strategies.

As such, the region is accelerating its hydrogen procurement strategies, creating opportunities for long-term supply relationships in what is expected to become a major global hydrogen trade corridor.

Japan's Ministry of Economy, Trade and Industry is evaluating 27 applications under its price-gap support scheme for clean hydrogen and its derivatives, a senior METI official said in July, underscoring the need for technological capabilities and scalability for clean hydrogen's success.

Platts assessed Oman hydrogen produced via alkaline electrolysis, including capital expenditures, at $4.96/kg Aug. 28, the same as a month earlier.

Platts assessed Japan's hydrogen produced via alkaline electrolysis, including capex, at $5.57/kg Aug. 28, marginally up from a month ago.