(This article has been updated to clarify project costs. The headline and first paragraph previously stated that the total project cost was $4.2 billion; this figure actually represents the combined costs of Phases 2 and 3. The overall total is now correctly reflected in the second paragraph. Additionally, Phase 1 costs and financing details have been added to the fifth paragraph.

Commercial operations of the second and third phases of India’s ACME Group’s green hydrogen project in Duqm Special Economic Zone (SEZAD) are expected to begin in 2030 and 2033, respectively.

The second and third phases, expected to cost $4.2 billion combined, are each expected to have an annual production capacity of 400,000 metric tonnes of green ammonia and 71,000 metric tonnes of green hydrogen, the state-owned Oman News Agency (ONA) reported on Monday.

Upon completion, the project’s total production capacity will be 800,000 metric tonnes per year of green ammonia and 142,000 metric tonnes per year of green hydrogen.

In May 2025, OPAZ had announced that the two new phases will span an area of 40 square kilometres (sq km) each.

The first phase, with a production capacity of 100,000 tonnes of green ammonia, is slated for commissioning before the end of 2026, local English language daily Oman Daily Observer had reported in December 2025.

In Aprl 2025, the newspaper had reported that Phase 1 is being developed at a total cost of $750 million. The project is backed by a $500 million loan from India’s REC.  

China's Sungrow Hydrogen is supplying alkaline water electrolysis units for the project.

Phase 1 is supported by an offtake agreement with Norway’s Yara company.

The green hydrogen project is among the 10 investment agreements and memoranda of cooperation valued at 2.9 billion Omani riyals ($7.5 billion) that were signed by the Public Authority for Special Economic Zones and Free Zones (OPAZ).

(Editing by Anoop Menon) (anoop.menon@lseg.com)

Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.