The delivery of the first major project cargo to Duqm marks a quiet but critical milestone in Oman’s bid to become a global player in green hydrogen and ammonia. On the back of rising demand for zero-carbon fuels, the arrival of oversized plant equipment signals more than just construction progress—it underscores the intensifying competition across the Gulf to monetize renewable resources through export-oriented hydrogen value chains.
Heavy Cargo Arrives Ahead of 2027 Commissioning
Last week’s delivery, orchestrated by Khimji Ramdas Shipping, included 14 packages of heavy-lift equipment, among them a single component weighing 120 metric tonnes. The cargo was transported from the Port of Duqm to the project site within the Special Economic Zone at Duqm (SEZAD), where Green Hydrogen and Chemicals Company SAOC (GHC)—a subsidiary of India’s ACME Group—is developing the plant.
With a $750 million investment tagged to its first phase, the facility will produce up to 100,000 tonnes per annum (tpa) of green ammonia, scaling to 1.1 million tpa over future phases. This puts the project within range of becoming one of the largest green ammonia plants globally by the time it reaches full capacity. Yet, what’s currently unfolding in Duqm is less about megatonnes and more about logistics, integration, and the testing of Oman’s wider hydrogen export strategy.
Duqm as a Testbed for Hydrogen Export Readiness
The inland transport of high-mass cargo and the coordination of future deliveries—such as electrolysers, PV modules, and tracking systems—reveal much about the maturity of Duqm’s infrastructure and Oman’s readiness to support mega-scale green projects. From grid connectivity and desalinated water supply to port throughput and customs coordination, every movement of cargo is a live audit of Duqm’s claims to being a regional energy export hub.
The Port of Duqm itself has been positioned for years as a multipurpose logistics and energy corridor. Yet, unlike liquefied natural gas, hydrogen and its derivatives like ammonia require complex co-location of renewable power, water supply, and chemical synthesis—all in a region characterized by high solar irradiance but water stress. With project cargo now arriving, Oman is no longer theorizing but operationalizing these value chains.
The ACME Model: Capital-Intensive but Export-Driven
The GHC facility fits a wider trend in hydrogen development—private developers, often from outside the region, taking the lead on capital expenditure while targeting export markets from the outset. India’s ACME Group has been vocal about its strategy to supply European and Asian customers, particularly in heavy industry and maritime sectors seeking low-carbon ammonia as a feedstock or fuel.
This export-oriented model bypasses the often slow buildout of domestic hydrogen offtake, but it also exposes projects to multiple layers of risk: global ammonia pricing, transport costs, regulatory fragmentation, and certification requirements from importing countries. Without firm offtake agreements publicly disclosed, Oman’s inaugural green ammonia output may face the same market volatility that has stalled similar ventures elsewhere.
Phased Development, but Is the Market Ready?
While the current target of 100,000 tpa positions the facility among first movers, the leap to 1.1 million tpa will require more than technical execution. According to the International Energy Agency (IEA), global demand for hydrogen-derived ammonia could reach 150 million tonnes by 2050 under net-zero scenarios. Yet as of 2024, less than 5% of that demand is covered by green production routes, and even less is backed by long-term contracts.
To bridge this gap, Oman will need to leverage its geopolitical neutrality, trade access via Duqm, and clean energy branding to differentiate from competitors like Saudi Arabia’s NEOM or the UAE’s Masdar. However, it’s worth noting that both these rivals have deeper state-backed funding channels and stronger domestic offtake ecosystems—factors that could challenge Oman’s cost competitiveness if global demand softens.
From Shipment to Strategy: What This Signals for Oman
Beyond this first shipment, the real question is whether Duqm can scale its success beyond a single plant. As more electrolyser components, solar panels, and structural systems land in Oman, the country’s bet on green ammonia as an export commodity is being tested in real time.
Unlike oil or LNG, where Oman has long-standing trading relationships and pricing power, green ammonia is a fledgling market with fragmented standards, opaque pricing benchmarks, and a rapidly shifting policy environment. Each cargo delivery is, therefore, not just a logistics achievement but a signal of whether Oman’s regulatory, investment, and infrastructure planning is keeping pace with the opportunity.
The cargo has landed. Now comes the harder part: ensuring the market will be there to receive it.
