MUSCAT: Hydrogen Oman (Hydrom), the orchestrator of the Sultanate of Oman’s green hydrogen industry, has clarified that energy supermajor BP — despite exiting one large-scale investment — remains committed to delivering another project it is leading in Oman.

In a statement, the state-run entity said: “As the national orchestrator of Oman’s Green Hydrogen Strategy execution and green hydrogen economy development and the entity mandated by Royal Decree to contract with developers on behalf of the Government of Oman, Hydrom confirms that BP has concluded its participation in the Duqm Green Hydrogen Project as part of the company’s global portfolio realignment. BP remains a committed partner in Oman’s energy transition through its continued participation in the Hyport Duqm project and its broader energy investments in the Sultanate of Oman”.

Hydrom noted that BP’s departure from the project — which, along with the HyDuqm venture, was one of two cancellations from a pipeline of nine hydrogen projects announced to date — was a mutually agreed decision.

“The latter was concluded by mutual agreement following an in-depth assessment of global renewable hydrogen offtake dynamics and investment frameworks. Hydrom values the partnerships developed through both projects and reiterates that these changes do not reflect any shift in the fundamentals of Oman’s hydrogen strategy or the resilience of its national framework”, it added.

Hydrom stressed that the remaining seven awarded projects remain on track and are progressing according to their approved development timelines. Among these, the ACME Duqm Project has officially entered Phase 1 of construction, targeting an initial annual output of 100,000 tonnes of green ammonia and 17,000 tonnes of green hydrogen, with a scalable pathway towards 1.2 million tonnes per year in future phases, it stated.

Earlier, in an interview to the Sultanate of Oman TV, Eng Abdulaziz bin Saeed al Shidhani, Managing Director of Hydrom, affirmed that Oman’s green hydrogen projects are progressing under a clear and well-structured contractual and timeline framework that ensures economic feasibility and establishes a favourable investment environment. He noted that the phased execution strategy enhances investor confidence and strengthens Oman’s position as a regional hub for the production and export of green hydrogen.

“From the moment an agreement for each project is signed, investors are granted a period of seven years to complete the development phase. The first three and a half years are dedicated to preliminary work, including field measurements and completion of engineering designs, in addition to securing an offtaker for the final hydrogen product”, Eng Al Shidhani stated.

“Following the Final Investment Decision (FID), financial and technical resources are allocated for project execution on the ground, with the remaining three and a half years assigned to actual construction activities. Upon entering commercial operation, each project receives a forty-year production period, enabling manufacturing, marketing, and revenue generation from hydrogen.”

Regarding concerns about potential energy loss in hydrogen during transport, Al Shidhani clarified: “The solution lies in converting electricity into hydrogen or its derivatives — such as ammonia — for transport and then reverting it to its original form when required. Naturally, conversion processes between electricity, hydrogen and ammonia involve energy loss; however, the exact percentages are currently neither precise nor confirmed, with figures varying without definitive verification”.

He continued: “This option is considered strategic for importing nations and especially for Oman, similar to the national experience with LNG exports. There is strong confidence in Oman that developing the hydrogen value chain is the most long-term and strategic pathway. We are working jointly with our partners to demonstrate its technical and economic viability”.

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