Hydrom, a subsidiary of state-owned Energy Development Oman, is inviting global energy companies to participate in Round 2 public auction to develop green hydrogen production in Dhofar Governorate.
It may be noted that the Round 2 public auction, officially launched last June, has given an opportunity for companies seeking to invest in sustainable energy projects.
In its statement, Hydrom said, “the Round 2 Public Auction offers up to three prime blocks, ranging in size from 340 km2 to 400 km2, exclusively dedicated to green hydrogen production.”
Hydrom aims to leverage Dhofar’s abundant renewable energy resources, including wind and solar power, to establish a robust green hydrogen industry in the country, said the firm.
Elaborating further, it said, applicants for the auction will undergo a comprehensive evaluation process conducted in three stages to ensure that only capable and committed participants with strong financial, development, and operating capabilities are eligible for the competitive bidding process.
“The first stage, known as the Minimum Qualification Criteria, establishes the minimum requirements that applicants must meet to demonstrate their capability and commitment. These criteria are designed to ensure that participants possess the necessary financial resources, development expertise, and operational capacities to successfully undertake green hydrogen projects in Dhofar, “ said the firm.
Further, the second stage, termed the Minimum Bid Criteria, sets forth the minimum requirements aligning project proposals with the strategic objectives of Oman’s foray into the green hydrogen value chain. Only bids that meet these requirements will proceed to the bid evaluation stage.
The final stage of the evaluation process is the Evaluation Framework, which provides a structured and comparative method for assessing bids.
To participate, companies must submit their Statements of Qualification (SOQ) by the deadline of October 8, 2023. The subsequent phase of the auction will commence this September 2023 with the release of the Request for Proposal (RFP) documents. This will provide qualified bidders with the necessary information to develop their proposals for green hydrogen projects in Dhofar.
The bid submission deadline is set for January 2024, allowing participants ample time to prepare and submit their proposals. The winners of the second round of the auction will be announced by the end of Q1 2024.
Last June, Hydrom held a qualification process followed by an investor roadshow, to provide comprehensive insights into the project and address potential queries from participants.
Successful bidders will be granted the opportunity to develop and operate green hydrogen projects within the allocated blocks. Additionally, participants will be requested to sign a Confidentiality Undertaking, safeguarding the sensitive information shared during the auction. It is important to note that a registration fee will be applicable to obtain the Request for Qualification (RFQ) documents.
Qualified bidders, after successfully completing the qualification round, will be required to pay a fee to obtain the Request for Proposal (RFP) documents. Subsequently, a fee for each bid to be submitted will also be applicable. These fees are intended to cover the administrative costs associated with the auction process.