Middle East Energy
OQ Alternative Energy and Asyad sign a green hydrogen offtake term sheet at Duqm
By Staff Writer | 6 September 2026
The term sheet puts an Omani logistics group behind a hydrogen deployment project expected to produce up to 400 kilogrammes a day at Duqm, with a dedicated refuelling station named as the route to expansion.
OQ Alternative Energy and Asyad Group have signed an offtake term sheet covering the deployment of green hydrogen for mobility in Oman. Under it, Asyad will explore the use of hydrogen produced through OQ Alternative Energy's green hydrogen deployment project at Duqm, in support of hydrogen powered mobility applications.
The signing was reported on 5 September 2026. The project sits within the Special Economic Zone at Duqm, alongside the refining, petrochemical, minerals and downstream manufacturing investment the zone has been drawing.
What the project covers
This is described as the first end to end green hydrogen deployment project for OQ Alternative Energy. Its scope runs from renewable power integration and hydrogen production through operations, certification, handling and commercialisation, and it is expected to produce up to 400 kilogrammes of green hydrogen a day. The stated route to a larger volume is a dedicated hydrogen refuelling station at Al Duqm.
Four hundred kilogrammes a day is a demonstration volume, and the parties are candid that it is. The value being bought here is not the hydrogen. It is the operating record: certification, handling procedure, safety case and real demand data, which is what a bankable second project needs and what no feasibility study produces.
The next phase of Oman's hydrogen journey is about moving from potential to practical application. This partnership with Asyad is an important step in that direction, connecting green hydrogen production with a real mobility use case and creating an opportunity to build experience across the full value chain
Salim al Kamyani, Chief Executive of OQ Alternative Energy
Al Kamyani said that Oman has the potential to become a competitive producer and exporter of renewable energy and green hydrogen, and that developing a domestic market alongside that is needed for a resilient hydrogen sector.
The logistics side of it
Asyad's interest is in its own fleet and handling operations rather than in hydrogen as a commodity. Placing production inside the same industrial and logistics zone as the end use is the point of siting the project at Duqm, because it removes the distribution question from the trial entirely.
Decarbonising transport requires practical solutions that can be deployed at scale and supported by a reliable energy ecosystem. Our collaboration with OQAE provides an opportunity to explore green hydrogen as part of that transition and to translate Oman's emerging hydrogen capabilities into applications across the logistics and mobility value chain
Ahmed al Bulushi, Chief Executive of Asyad Drydock and Infrastructure Services
What has not been published
A term sheet is not a contract. No capital value has been attached to the project, no offtake volume or price has been stated, no construction programme or completion date has been given for the production plant or the refuelling station, and no contractor has been named for either. The parties say the next step is to turn the term sheet into a deployment framework, and that document, not this one, will carry the dates and the obligations. For a contractor tracking hydrogen work in the zone, the useful moment is the framework, and no date has been given for it.