NEOM Green Hydrogen Project reaches 80% completion milestone

 

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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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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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