Neom, Saudi Arabia — Saudi Arabia’s futuristic city NEOM says it has outlined a clear path towards the at-scale production of green hydrogen in NEOM for the global market.
The NEOM Green Hydrogen Company (NGHC) facility being built in Oxagon is set to be the world’s largest commercial-scale green hydrogen production facility in the world.
Once operational in 2026, it will produce an initial 600 tons of green hydrogen per day, which will be available for global export, saving as much as 5 million tons of CO2 emissions per year.
During the announcement of its recent financial close, NGHC – an equal joint venture between NEOM, ACWA Power and Air Products – highlighted a total of SAR 22.9 billion of financing secured from 23 financial institutions, including Saudi Industrial Development Fund (SIDF), National Infrastructure Fund (NIF), as well as local and international banks.
This funding is not only a critical milestone on the way towards delivering NGHC’s global ambitions, but a vote of confidence from partners and financiers in NEOM as an incubator for renewable energy solutions and a hub for carbon-conscious investment.
NEOM’s attainment of several key enabling milestones recently, falls in line with Energy Minister HRH Prince Abdulaziz bin Salman’s goal for Saudi Arabia to be a leading exporter of hydrogen to the world.
With NGHC as the renewable energy flagship tenant within the manufacturing eco-system being developed at Oxagon, immediate downstream and upstream localization opportunities are already emerging. NEOM’s Hydrogen Innovation and Development Center (HIDC) is already located in Oxagon’s research and innovation district. Announced in 2022, HIDC seeks to accelerate lab-to-market solutions and business development across the spectrum of hydrogen, green fuel production, utilization, and transport.
Land preparation was completed and handed over by NEOM to NGHC. Construction of the plant is well underway with the first teams from NGHC already on-ground – making them the first tenant workforce in Oxagon.
Electricity generation using fossil fuels is the largest worldwide contributor to carbon emissions and global warming, and NGHC’s volume of green hydrogen could directly cut carbon emissions by up to 5 million tons of CO2 per year, as well as support indirect decarbonization of a range of industries and sectors. Reports suggest that green hydrogen could make up 12 percent of the global energy mix and the regional green hydrogen industry worth up to SAR 750 billion by 2050.
Nadhmi Al-Nasr, CEO NEOM, said, “NEOM is investing in technology and industry innovations that will support a global transition to clean and sustainable energy. Through this work, we will create jobs, attract and develop local and international talent, as well as help drive economic diversification in the Kingdom.