Eng Abdulaziz Al Shidhani, the General Manager of Hydrogen Oman, said that the company aims to invest in roughly 30 percent of the lands allocated by Oman for green hydrogen projects, highlighting the Sultanates eagerness to collaborate with the Saudi private sector in investment opportunities offered in Round 2 of the Public Auction.
Hydrogen Oman or Hydrom aims to produce around 8.5 million tons with an investment value of $140 billion.
In his remarks to Asharq Al-Awsat, Shidhani noted that the first round of auctions resulted in signing five agreements and attracted 14 well-known world companies in sectors of gas, manufacturing, and investment with an investment value worth $30 billion spanning over 1,660 sq km in Al Wusta Governorate, Oman, with an annual production of 750,000 tons by 2030.
He added that the second round kicked off in June and the signing with investment parties is expected during the first quarter of 2024.
The two rounds aim to reach an output of 1.5 million tons of green hydrogen per year by 2030 with an investment value of $80 billion.
Shidhani went on to say that each phase takes around 3-3.5 years for measures and designs then 3.5 years for construction.
He pointed out that once both rounds are done, the company would continue to prepare for investment opportunities in the next two years.
Speaking about the reason behind choosing Saudi Arabia in the second round of auctions, he noted that the Saudi private sector is strong, active, and open to transitioning to alternative energy.
Oman seeks to open dialogue with the Saudi private sector to play an effective role in Oman's Round 2 Public Auction, to form an integrative partnership in hydrogen-related industries, and to localize these industries in the countries of the region.
He added that there are a number of embassies in Riyadh that have no representation in Oman, and this would help attract foreign capital to invest in these projects.
In the same context, Hydrom conducted an in-person session in Riyadh on Wednesday.
The event aimed to spotlight Hydrom's vital role in the green hydrogen field and promote the Round 2 Public Auction of green hydrogen blocks in the Sultanate of Oman.
Distinguished guests, including embassy representatives from many countries interested in green hydrogen, prominent government officials and representatives from the Saudi private sector, and members of the press, attended the event.
The Ambassador of the Sultanate of Oman to the Kingdom of Saudi Arabia Faisal bin Turki Al Said commented on the event, saying: "The visit highlighted the strong investment and cooperation opportunities that leverage the enduring relations between the Kingdom of Saudi Arabia and Oman. Both nations share a common vision of sustainable energy production and a net zero economy.”
“Oman's abundant renewable energy resources and world-class infrastructure and logistics make it an ideal destination for Saudi investors and those from other countries looking to steer the world toward a greener, more sustainable future,” he added.
Oman's Round 2 Public Auction for green hydrogen blocks is capturing widespread attention from international energy corporations. This auction is poised to award up to three green hydrogen blocks within the Dhofar Governorate, presenting lucrative investment prospects and highlighting Oman's commitment to fostering a robust green hydrogen sector, said Shidhani.
