Oman Launches Study for Large-Scale Hydrogen-to-Power Project

On May 6, 2026, Oman took a significant step in its clean energy transition as the state-owned Nama Power and Water Procurement Company (Nama PWP) launched a tender for a large-scale hydrogen-to-power project. The initiative seeks consultancy services to assess the feasibility of developing a new power plant capable of running on up to 100% green hydrogen, marking a shift toward low-carbon electricity generation.

The proposed independent power project (IPP) is expected to have a generation capacity of 800 to 1,000 megawatts (MW). The study will evaluate technical feasibility, economic viability, and infrastructure requirements, including hydrogen storage and transport. This move represents one of the first concrete efforts in the Gulf region to explore hydrogen as a direct fuel for utility-scale power generation rather than for export or industrial use.

The tender process began on May 4, 2026, with submissions due by June 21, 2026, highlighting the government’s near-term timeline for advancing the project. The study will also assess how hydrogen-based power can be integrated into Oman’s national grid, particularly as renewable energy capacity from solar and wind continues to expand.

The initiative aligns with Oman’s broader energy strategy under Vision 2040, which aims to diversify energy sources and reduce reliance on natural gas. While the country has already been investing heavily in green hydrogen production-primarily for export-this project signals a growing interest in domestic applications, including long-duration energy storage and dispatchable clean power.

Experts note that hydrogen-to-power systems could help address intermittency challenges associated with renewable energy, though cost competitiveness with conventional gas-based plants remains a key consideration. If successful, the project could position Oman as a regional leader in integrating hydrogen into power generation and accelerate the transition to a more sustainable energy system.

Hydrogen-to-power studies are where Gulf hydrogen strategy meets domestic energy demand, and outcomes shape both hydrogen infrastructure and firm-power investment decisions. Our energy-transition and market-intelligence teams help clients evaluate what these projects mean for hydrogen offtake and disclosure narrative.