NEOM Green Hydrogen Co. explores investment opportunities in MENA region

NEOM Green Hydrogen Co. explores investment opportunities in MENA region

On October 10, 2023, during the Middle East and North Africa Climate Week in Riyadh, the CEO of NEOM Green Hydrogen Co., David Edmondson, shared insights into the energy transition journey in the MENA region. He highlighted that the company is considering investments and potential expansions not only within Saudi Arabia but also across the region and beyond.

Edmondson emphasized the upcoming c
ommencement of full-scale green ammonia production at a facility by the end of 2026. He stated, "We are interested in the next phase of investment. We're doing various feasibility studies on what we could do, debottlenecking the existing plant, and potentially looking at future investments. I can see additional investments in NEOM Hydrogen Co. but also across the whole of Saudi Arabia and in the MENA region."

 

NEOM Green Hydrogen Initiative aligns with Saudi Vision 2030 goals

 

He also underlined Saudi Arabia's potential to become a global leader in exporting green hydrogen, attracting investors due to its commitment to Vision 2030 and ambitions to be a leading exporter. Edmondson noted the arrival of wind turbines at the port of NEOM and the upcoming delivery of hydrogen storage tanks. The project aims to produce green ammonia by the summer of 2026 and reach full production by the end of that year.

NEOM Green Hydrogen Co. (NGHC) is a joint venture involving ACWA Power, Air Products, and NEOM, and it has reached financial closure for its green hydrogen plant, securing investments from local, regional, and international banks and investment firms. Edmondson expressed confidence in their financial situation, saying, "We now have all the financing we need."

 

Neom inks deals to fund green hydrogen project

 

The plant's focus is primarily on the export market, with plans to produce 600 tons a day of carbon-free green hydrogen by 2026. Edmondson noted that as the local market evolves, more opportunities will likely emerge. He added that the Kingdom's commitment aligns with the Vision 2030 goal of exporting 4 million tons per year of low-carbon hydrogen by 2030.

Edmondson emphasized the significant role NGHC plays in Saudi Arabia's ambition to become the world's largest exporter of carbon-free hydrogen, anticipating that many others will follow suit.

He also highlighted the growing use of hydrogen as a fuel source for vehicles, including buses, trucks, trains, and mentioned Saudi Arabia's hydrogen train project with Alstom. Edmondson discussed the urgency of addressing climate change and the need for global action, noting that the COP28 conference in the UAE is expected to be a pivotal moment for addressing climate-related challenges.

In conclusion, while acknowledging the progress in green technology, Edmondson emphasized the ongoing challenge of limiting global temperature rise in line with the Paris Agreement's target of 1.5 degrees Celsius.

Source: https://www.arabnews.com/