Duqm project strengthens Oman’s bid to become a leading exporter of hydrogen and low-carbon fuels
India’s ACME Group has signed an investment agreement worth approximately $4.2bn for the second and third phases of its green hydrogen and green ammonia project in Oman’s Special Economic Zone at Duqm (SEZAD), reinforcing the Sultanate’s ambition to become a major global supplier of low-carbon fuels.
The agreement, valued at around OMR 1.6bn ($4.2bn), forms part of a broader package of approximately $7.5bn in investments recently announced for Duqm, highlighting the zone’s growing importance as Oman’s industrial, logistics and clean-energy hub.
Under the expansion plans, the new phases are expected to produce around 71,000 tonnes of green hydrogen and 400,000 tonnes of green ammonia annually per phase, supported by large-scale solar and wind power generation. Commercial operations are targeted for around 2030 and 2033 respectively.
Duqm Emerges as a Hydrogen Export Hub
The project is among the largest green hydrogen investments announced in the Gulf this year and underscores growing international confidence in Oman’s renewable-energy resources, strategic location and export infrastructure.
Duqm has emerged as the centrepiece of Oman’s hydrogen strategy, benefiting from abundant solar and wind resources, extensive industrial land, deep-water port facilities and direct access to international shipping routes. Through Hydrom, the state entity overseeing the sector’s development, Oman is targeting more than $50bn in hydrogen-related investments and aims to produce around 1.5 million tonnes of green hydrogen annually by 2030.
Green Ammonia Gains Strategic Importance
Green ammonia is increasingly viewed as one of the most practical methods for transporting hydrogen internationally because it can be shipped using existing global maritime infrastructure. Once delivered, it can either be converted back into hydrogen or used directly as a low-carbon fuel and industrial feedstock.
This advantage is expected to make green ammonia a key component of future energy trade flows as Europe, Japan and South Korea seek reliable supplies of low-carbon fuels to meet decarbonisation targets and reduce dependence on fossil fuels.
Gulf Competition Intensifies
Oman’s latest investment announcement comes amid intensifying competition among Gulf states to establish leadership positions in the emerging hydrogen economy. Saudi Arabia is developing the multi-billion-dollar green hydrogen project at NEOM, while the UAE is pursuing a series of hydrogen and ammonia initiatives linked to its renewable-energy and industrial diversification strategies.
For Oman, the focus on Duqm reflects a strategy of leveraging natural renewable-energy advantages and export infrastructure to attract international investors and secure long-term supply agreements with energy-importing markets.
However, despite growing investment momentum, the global hydrogen sector continues to face significant challenges, including high production costs, evolving regulatory frameworks and uncertainty over the pace of future demand growth. Industry participants argue that continued technological improvements, lower renewable-energy costs and supportive government policies will be critical to achieving commercial scale.
The latest ACME investment nevertheless represents a significant vote of confidence in Oman’s energy-transition strategy and reinforces the country’s emergence as a key player in the global race to supply the low-carbon fuels expected to underpin future industrial and energy systems.
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