According to top officials, operators of green hydrogen facilities in the Sultanate of Oman will be eligible for 47-year land concessions, among other perks.
Registrations for the open tender procedure, on which land grants of roughly 320 square kilometers each would be based, began earlier this week, according to Eng Abdulaziz al Shidhani. The ministry is offering investors a 47-year concession beginning with the signing of the program management agreement and sub-usufruct grant.
He went on to say that the already-low property fees would be reduced by up to 100% during the development phase. Land licensing begins with a 20 baizes per square meter basis.
When speaking at a press conference earlier this week, senior officials mentioned that the Omani authorities will be entitled to earn base and surplus royalties. Furthermore, OQ, the state-owned globally integrated energy organization, must be granted a 20% stake in the project. Additionally, project owners must pay all applicable company taxes.
The range of green hydrogen projects involves comprehensive development, which encompasses the manufacturing of green hydrogen, derivative conversions, and output global supply. Water and hydrogen pipelines are two instances of a shared platform that will be bid on separately.
The state, on the other hand, is not required to purchase any electrical potential from the initiative, primarily because it has its own program for purchasing new renewable electricity capacity to satisfy the nation’s energy requirements.
Only serious developers, according to the officials, will be given land allocations. Those who do not use the allotted land for their specified project within a particular time frame will have it forcibly removed from them.
While the ministry will be the industry’s supervisor and legislator, Hydrom will be the industry’s integration EDO. Hydrom will oversee the entire system, managing offtake among shareholders and handling shared infrastructure, bidding procedures, and so on.
Oman’s current goal is to boost green hydrogen output to 3.75 million tonnes per year until 2040. The country forecasts that total expenditure of $140 billion will be required throughout this time period to meet its output objective by 2050.