Saudi Arabia to produce 1.2 million tons of ammonia a year

Neom Green Hydrogen Company is now about 80% complete and expected to launch commercially in 2027
 

Saudi Arabia: World’s largest green hydrogen project nearing completion

Deserts are often dismissed as barren, lifeless, and inhospitable. But Saudi Arabia is proving that these vast landscapes hold untapped potential. A historic project now underway in the Kingdom will harness the desert’s abundant sun and wind to produce 1.2 million tons of green ammonia annually—a milestone in the global shift toward sustainable energy.

This groundbreaking initiative is part of NEOM, the $500 billion mega-project championed by Crown Prince Mohammed bin Salman. NEOM is designed to diversify the Saudi economy away from oil, prioritizing renewable energy, advanced technology, and futuristic urban design.

From harsh desert to global energy hub

Across the world, deserts are becoming prime locations for renewable projects thanks to their year-round sunlight and open space. Saudi Arabia has taken this concept further, developing back-to-back mega-projects in its northwest desert region under the NEOM banner.

 

Read More       Saudi Arabia looks to Germany to export green hydrogen to Europe

 

One of its most ambitious ventures is the world’s largest green hydrogen project, now about 80% complete and expected to launch commercially in 2027.

Unlocking the “World’s most mysterious power source”

Developed by Air Products in partnership with ACWA Power and the NEOM Green Hydrogen Company, the $8.4 billion facility will generate:

·         600 tonnes of green hydrogen per day

·         Converted into 1.2 million tonnes of green ammonia per year

The entire process will be powered by renewables, including:

·         2.2 GW of solar capacity

·         1.6 GW of wind capacity

This integrated system ensures that the plant’s output remains cost-stable for decades—a major advantage in volatile energy markets.

Why Hydrogen?

Saudi Arabia’s investment in hydrogen is strategic. According to Offshore Technology, the Kingdom aims to:

·         Cut its national carbon footprint

·         Create high-skill jobs

·         Attract billions in foreign investment

·         Establish itself as a leading global hydrogen exporter

Initially, the project targeted European transport markets with green ammonia. But as Hydrogen Insight notes, demand for pure hydrogen in transportation has declined since 2023. Still, project leaders remain confident.

 

Read More       NEOM’s Green Hydrogen Project reaches 80% completion

 

“The one positive point for our NEOM project is that since we own the power generation in both solar and wind, and there is no other variable cost, our price…is going to be basically fixed for the life of the project. So I think in the long-term, it’s a very favourable outlook for us in the market.”
Eduardo Menezes, CEO

Challenges on the horizon

While hailed as a model of sustainability and innovation, the project faces scrutiny. Being the first of its kind, it requires careful environmental review and rigorous research to ensure that the ambitious goals of sustainability are met without unforeseen consequences.

Even so, NEOM’s desert hydrogen project represents a pioneering leap in renewable energy, positioning Saudi Arabia at the center of the global green hydrogen economy.

Source: https://www.ecoportal.net/

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