ACME Oman signs pacts for Phase 2 and 3 of green ammonia project
MUSCAT: Hydrogen Oman (Hydrom), the Public Authority for Special Economic Zones and Free Zones (OPAZ) and Indian-based global energy giant ACME Group signed project development and land usufruct agreements for the second and third phases of the ACME green hydrogen and green ammonia project in the Duqm Special Economic Zone.
This signing officially places the project under the umbrella of Hydrom’s regulatory framework, enhancing the integration of major commercial projects and paving the way for the next phase of implementation.
The agreements were signed by His Excellency Eng. Salim bin Nasser Al Aufi, Minister of Energy and Minerals and Chairman of the Board of Directors of Hydrom, His Excellency Sheikh Dr. Ali bin Masoud Al Sunaidy, Chairman of OPAZ, and Gursharan Jassal, Regional Director of ACME Group in the Sultanate of Oman.
The second and third phases of the project cover an area of 80 square kilometers and are expected to produce approximately 71,000 tons of green hydrogen and 400,000 tons of green ammonia annually for each phase. The signing of the agreement for the second and third phases follows the commencement of implementation of the first phase, which produced 100,000 tons of green ammonia, supported by a purchase agreement with the Norwegian company Yara. Upon completion of all phases of the project, the group aims to reach an annual production capacity of 0.9 million tons of green ammonia.
Engineer Abdulaziz Al Shidhani, Managing Director off Hydrom, said: “This signing represents another pivotal step in Hydrom’s roadmap to expand an integrated portfolio of green hydrogen projects in the Sultanate of Oman. It completes the inclusion of one of the first hydrogen projects identified within the existing initiatives in its various stages within the national framework that Hydrom is overseeing its implementation. This signing not only enhances the consistency of previous initiatives with the regulatory framework but also confirms Hydrom’s commitment to an organized and scalable development, enhancing investor confidence and consolidating the Sultanate of Oman’s position in the global hydrogen market.”
He added that the signing comes at a time when the hydrogen sector in the Sultanate of Oman is witnessing rapid progress, led by the third round of land allocation auctions currently being implemented by Hydrom. With the national portfolio fully developed and regulatory, infrastructure, and human resources well-positioned, the sector continues to confidently advance toward meeting global demand and consolidating Oman’s position as a reliable source of green hydrogen in the long term.
For his part, Eng. Ahmed bin Ali Akaak, CEO of the Special Economic Zone at Duqm (SEZAD), said: “The signing of the agreement reflects the success achieved by the zone in attracting green hydrogen and green ammonia projects.” He emphasized the interest that the green hydrogen sector enjoys in the Special Economic Zone at Duqm (SEZD) within the zone’s strategy (2025-2030), and the zone’s management’s endeavor to adopt green industry projects in accordance with Oman Vision 2040 and the Sultanate of Oman’s strategy to achieve carbon neutrality by 2050.
Gursharan Jassal, Regional Director of ACME Group in Oman, said: “These important agreements to develop the next phase of the green ammonia project in Duqm are a pivotal step that will enhance the country’s efforts to create a sustainable energy future. This cooperation embodies the company’s shared commitment to contributing to achieving the goals of Oman Vision 2040 and strengthening the Sultanate of Oman’s role in the global green hydrogen economy.”
With this signing, the number of green hydrogen projects awarded by Hydrom in the Al Wusta and Dhofar governorates rises to nine, with an investment value exceeding $50 billion and a total production capacity of approximately 1.5 million tons of green hydrogen annually by 2030. These projects rely on approximately 35 gigawatts of renewable energy, within a unified national framework that enables large-scale implementation and aligns with growing global demand. Through its growing portfolio, Hydrom continues to consolidate Oman’s position as one of the most advanced and ready hydrogen ecosystems in the world.
Date: 18 May 2025
Source: Hydrom
