Oman's state owned Nama Power and Water Procurement has launched a tender to appoint a consultancy to conduct a technoeconomic feasibility study for a proposed hydrogen based independent power project with a capacity of up to 1 gigawatt. The tender, announced on 5 May 2026 with a submission deadline of 21 June, marks one of the most significant moves yet by an Arabian Peninsula state utility to evaluate the deployment of hydrogen capable power generation at utility scale. The development matters because it provides one of the first concrete signals that hydrogen based power generation is being considered as a serious option for Gulf state electricity systems, building on the region's broader strategic positioning as a major exporter of green hydrogen.

 

The Scope of the Feasibility Study

 

The chosen consultant will undertake an initial assessment of the feasibility of a power project in Oman capable of operating on up to 100 per cent hydrogen, with an indicative capacity range of 800 megawatts to 1,000 megawatts. The technoeconomic assessment is expected to evaluate the technical viability of hydrogen fuelled power generation at the proposed scale, the cost implications of different design configurations, the commercial structures that could support the project, and the broader integration of the project into Oman's electricity system.

The decision to specify capability for up to 100 per cent hydrogen operation is technically significant. Most existing hydrogen capable power plants are designed to blend hydrogen with natural gas in varying proportions, with full hydrogen operation typically reserved for future conversion phases. By evaluating a project specifically designed to operate on pure hydrogen, Oman is exploring one of the most advanced configurations of hydrogen power generation currently available, which has implications for both equipment selection and fuel supply requirements.

 

The Tender Process

 

Tender documents are available through the PWP website for a fee of 150 Omani rials, equivalent to approximately 390 dollars, until 31 May. The fee is waived for small and medium sized enterprises with a valid Riyada card, providing access to local Omani consultants alongside international firms. The deadline for submitting applications is 21 June, providing a relatively tight timeline that signals the urgency the procurement agency is attaching to advancing the project.

The structured procurement process is consistent with how leading regional utilities are approaching the development of new technology projects. By appointing a specialist consultant to conduct the initial feasibility work, the agency is positioning itself to make informed decisions about the project's commercial structure, technical specifications and procurement approach before committing to a full development programme. This staged approach is particularly important for hydrogen power projects because the technology and supply chain considerations involved are more complex than for conventional gas fired or renewable generation.

 

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The Wider Omani Hydrogen Strategy

 

The tender forms part of Oman's broader strategy to position itself as a major player in the global hydrogen economy. The country launched its third green hydrogen auction in August 2025, building on earlier auction rounds that awarded three projects through the central hydrogen development entity Hydrom. The cumulative result of these auctions has been to establish a substantial pipeline of green hydrogen production projects across the country, supported by the abundant solar and wind resources available in the region.

The exploration of hydrogen capable power generation domestically represents an important strategic complement to the export oriented green hydrogen production that has dominated previous announcements. By developing capability to use hydrogen for domestic electricity generation, Oman creates an additional offtake market for its hydrogen production while also diversifying its own electricity generation portfolio. This combination of export and domestic use can strengthen the overall economics of hydrogen development by providing more flexibility in how production volumes are allocated.

 

The Strategic Significance of Domestic Hydrogen Demand

 

For green hydrogen producers globally, securing reliable demand has been one of the most persistent challenges facing project development. Many announced hydrogen projects have struggled to advance beyond memoranda of understanding because of difficulties in identifying credible offtake at competitive prices. By developing a domestic market for hydrogen through power generation, Oman is creating an alternative demand source that can support the commercial viability of its green hydrogen projects regardless of the pace of export market development.

The combination of domestic and export demand is particularly important during the early phase of hydrogen market development. As global hydrogen trading infrastructure continues to develop, the ability to deploy production volumes domestically provides a useful hedge against potential delays in establishing reliable export pathways. For other countries with substantial green hydrogen ambitions, the Omani approach of developing both export and domestic demand simultaneously may provide a useful model for managing the transition risks of building a hydrogen economy.

 

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The Wider Industrial Context

 

The hydrogen power tender comes amid broader industrial developments in Oman that signal the country's positioning in the renewable energy value chain. The country recently profiled its new polysilicon factory, which is currently the largest such facility outside China and produced its first polysilicon earlier this year. The combination of polysilicon manufacturing and green hydrogen development positions Oman across multiple stages of the renewable energy supply chain, from upstream materials through to downstream energy production.

For investors monitoring the Gulf renewable energy and hydrogen markets, the combination of these developments indicates that Oman is pursuing a comprehensive strategy that goes beyond simple hydrogen export ambitions. The country appears to be building integrated industrial capability across multiple categories that support the energy transition, which provides a more durable basis for long term economic positioning than reliance on any single technology or commodity.

 

What the Tender Signals for Hydrogen Power Generation

 

The wider significance of the Omani tender lies in what it indicates about the maturation of hydrogen power generation as a serious utility scale technology option. While hydrogen capable turbines and combined cycle plants have been developed by major equipment manufacturers, large scale projects designed specifically for high hydrogen operation remain relatively rare. The Omani feasibility study will provide useful data on the practical and commercial considerations involved in deploying such projects at gigawatt scale.

For other utilities considering similar projects, the outcome of the Omani feasibility study will be closely watched. The technoeconomic assessment is expected to provide insights into the cost structure of hydrogen power generation, the commercial arrangements that can support such projects, and the operational considerations involved in integrating hydrogen fuelled capacity into electricity systems. As the global hydrogen economy continues to develop, the experience of early adopters such as Oman will play an important role in shaping how the technology is deployed in other markets.