The HyDuqm green hydrogen project in Oman, led by a consortium of France’s Engie and South Korea’s Posco, is expected to attract between $7 billion and $8 billion in investment to reach full capacity, according to recent reports.
The consortium has secured a 340 sq km block in Duqm, located along the central Omani coast. This concession is one of eight land blocks granted by Hydrogen Oman SPC (Hydrom), a subsidiary of Energy Development Oman, to international developers.
The project includes the addition of up to five gigawatts (GW) of new wind and solar capacity, along with a renewable hydrogen plant capable of producing up to 200,000 tons annually (tpa), as reported by the Oman Daily Observer.
Duqm aims to produce 1 million tpa of renewable hydrogen by 2030, requiring an estimated $35 billion in investments, according to Hyerin Park, Vice-President for Hydrogen Business Development at Engie Asia Middle East and Africa. Park shared these details at a forum held last week.
“Investors are cautious about projects where risks are highly concentrated, making public-private partnerships and policy-driven risk mitigation vital for securing financing,” Park explained.
Government-backed incentives, such as loan guarantees and subsidies, are crucial in bridging the financing gap, she added.
HyDuqm also plans to supply green ammonia to South Korea to help decarbonize coal-fired power plants, creating stable, long-term demand.
For better financial predictability and to attract more investors, Park noted the importance of clearer hydrogen pricing structures and long-term contracts.
