80% work completed on NEOM Green Hydrogen Project
Saudi Arabia’s ambition to lead the
global clean energy transition took a major step forward this week, as the NEOM
Green Hydrogen Project passed the 80% construction milestone. Once complete,
the site will become the world’s largest green hydrogen and ammonia production
facility—positioning the Kingdom as a leader in the global hydrogen economy.
Backed by a global consortium of
engineering, procurement, and construction (EPC) giants, the project is a
cornerstone of Saudi Arabia’s Vision 2030, which aims to diversify the national
economy beyond oil and establish the country as a clean energy superpower.
A
first-of-its-kind renewable energy integration
The NEOM project integrates a
diverse mix of large-scale renewable assets to power its hydrogen production,
enabling the export of up to 1.2 million tonnes of green ammonia annually via a
dedicated jetty to international markets.
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Arabia's Neom Green Hydrogen Project to become a trend-setter in clean energy
Key components of the site include:
- Wind Power:
257 turbines generating 1.6 GW of capacity
- Solar Power:
A solar farm the size of Manhattan, generating 2.2 GW
- Transmission Grid:
A 4 GW network to connect renewable inputs to the hydrogen facility
The project is being developed by
the NEOM Green Hydrogen Company (NGHC)—a joint venture between ACWA Power, Air
Products, and NEOM. Air Products is serving as the lead EPC contractor and
system integrator, while Larsen & Toubro (L&T) is managing the
construction of the renewable energy infrastructure.
Strategic
offtake and global impact
Air Products will hold exclusive
30-year offtake rights for all green ammonia produced. The company’s EPC
contract is valued at approximately $6.7 billion.
According to NGHC, 4 GW of combined
wind and solar power generation is on track for completion by mid-2026,
followed by the commissioning of electrolysers and the start of green ammonia
production in 2027.
$8.4
billion secured in landmark financial close
In May 2023, NGHC secured an $8.4
billion financial close, including a $6.1 billion non-recourse loan from 23
local and international financial institutions, such as SIDF and NIF.
“This pioneering project directly
supports the Kingdom’s Vision 2030 ambitions to drive economic diversification
and global leadership in clean energy — paving the way for Saudi Arabia to
become the world’s leading hydrogen producer while strengthening its role as a
key player in the global energy sector,” NGHC stated.
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Arabia’s Neom to produce 600 tons of green hydrogen daily
A
global shift toward hydrogen
The NEOM project is part of a
broader global push toward hydrogen as a clean energy alternative. According to
the International Energy Agency, low-emission hydrogen projects are
accelerating worldwide, aided by mega-scale facilities like NEOM and growing
investor interest.
While some initiatives have faced
setbacks—such as Poland recently scrapping a 105-MW electrolyzer project due to
funding shortfalls—NEOM demonstrates the viability and scale of green hydrogen
when backed by strong policy, capital, and technological partnerships.
As the world moves away from fossil
fuels, projects like NEOM could well define the future of global energy.
Source:
Energies Media
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