NEOM’s Green Hydrogen Project reaches
80% completion
Saudi Arabia’s groundbreaking green
hydrogen initiative is approaching the finish line. The NEOM Green Hydrogen
Company (NGHC)—a joint venture between ACWA Power, Air Products, and NEOM—has
announced that its $8.4 billion, 2.2GW green hydrogen and ammonia plant in
Oxagon is now 80% complete.
Set to become the world’s largest
green hydrogen facility, the project targets full operations by 2027, with a
daily output of 600 tonnes of carbon-free hydrogen—converted into green ammonia
for efficient export.
Key
Stats
- 4 GW
of wind and solar energy expected online by mid-2026.
- 600 tonnes/day
of green hydrogen output.
- 5 million tonnes
of CO₂ emissions avoided annually.
- Air Products
holds a one-third stake and is currently the sole committed offtaker.
- 23 global/regional banks are backing the project financially.
Read More Saudi
Arabia's Neom Green Hydrogen Project to become a trend-setter in clean energy
A
Strategic Pillar of Vision 2030
This isn’t just a high-profile
energy project—it’s a key piece of Saudi Arabia’s Vision 2030, the nation’s
push to diversify beyond oil. Each partner plays a strategic role:
- ACWA Power
delivers renewable energy expertise.
- NEOM
provides the futuristic infrastructure.
- Air Products
secures international offtake and export pathways.
While the project is
well-capitalized and technically advanced, it faces a commercial hurdle: lack
of additional buyers beyond Air Products. This uncertainty raises questions
about current global appetite for hydrogen and its competitiveness in the
energy mix. There’s even talk of pivoting toward domestic use if export markets
don’t materialize.
A
Global Test Case for Green Hydrogen
This project isn’t just about Saudi
Arabia—it’s a critical test for the viability of green hydrogen at scale. If
successful, it could serve as a blueprint for integrating renewable energy,
electrolysis, and ammonia conversion into a global clean energy supply chain.
Read More Saudi
Arabia poised to become a leading hydrogen producer and exporter: Ghamdi
But if it falters, it could
undermine investor confidence in large-scale hydrogen ventures and slow
momentum in the global decarbonization race—just as climate urgency
intensifies.
What’s
Ahead
With most construction now complete,
the NEOM team is shifting gears from building to proving: Can green hydrogen be
produced, shipped, and sold at scale? The answer could define the future of
hydrogen—and shape energy strategies far beyond the Saudi border.
Source: Hydrogen Fuel News
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