MUSCAT: The signing of new agreements between India-headquartered ACME Group and Hydrom marks a major advancement in Oman’s efforts to scale up its green hydrogen ambitions. The Project Development and Usufruct Agreements signed on Sunday, May 18, formally bring ACME’s Phase 2 and 3 hydrogen and ammonia projects in Duqm under the national framework overseen by Hydrom.

In an interview with the Observer, ACME’s Country Manager in Oman, Gursharan Jassal, said the new pact reflects strong confidence in Oman’s clean energy strategy and long-term vision for global leadership in green hydrogen. “This agreement represents a major step toward a cleaner and more sustainable energy future for Oman,” he noted.

The expanded projects will span 80 square kilometres within the Special Economic Zone at Duqm (SEZAD) and are expected to produce 71,000 tonnes of green hydrogen and 400,000 tonnes of green ammonia annually in each phase. This builds on ACME’s Phase 1 facility currently under construction, which will produce 100,000 tonnes of green ammonia annually under an offtake agreement with Yara International.

Jassal explained that Phase 1 is targeted to begin production by Q1 2027, while Phase 2 is scheduled for 2028–2030 and Phase 3 from 2030–2033. He revealed that the project’s first phase has already achieved financial closure with backing from India’s Power Finance Corporation. “We have signed a term sheet for Phase 2 and will now proceed with finalising offtake and financial agreements,” he added.

ACME is currently focused on exporting green ammonia from Duqm, with key markets in Europe and Far East Asia. Jassal also highlighted Oman’s top ranking in ACME’s global simulation for the lowest cost of producing hydrogen and ammonia, which factored heavily in the company’s decision to invest.

From Hydrom’s side, Managing Director Eng Abdulaziz al Shidhani said the inclusion of ACME’s legacy initiatives under the national hydrogen portfolio strengthens the regulatory alignment and sends a strong message to global investors. “It’s a positive message to the market that Oman is continuing to award new projects and build the green hydrogen ecosystem,” he told the Observer.

With this latest addition, Hydrom’s portfolio has grown to nine large-scale projects across Al Wusta and Dhofar, with combined investments exceeding $50 billion and a production target of 1.5 million tonnes of green hydrogen per year by 2030. The projects will be powered by approximately 35 GW of renewable energy.

Al Shidhani also noted that the timing of the agreement supports Hydrom’s third land auction round, currently underway, and will help attract further attention from prospective investors. “Our role is to continue working closely with ACME and others to ensure successful execution while addressing any implementation challenges,” he affirmed.

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