Neom hydrogen hub hits 80% build milestone

The Kingdom of Saudi Arabia is known for its proclivity for the massive and unprecedented projects it pursues. Now the NEOM Green Hydrogen Project has surpassed 80% completion, which represents a major milestone for the Kingdom’s ambitions to build the world’s largest green hydrogen and ammonia facility. The project has been brought closer to completion thanks to a global consortium of EPC giants driving construction and technology delivery. This development underscores the potential that the project has to completely revolutionize clean fuel production and exports.

The NEOM Green Hydrogen Project integrates a diverse portfolio of renewable generation assets

The project is unlike anything the world has ever seen, integrating several key renewable generation assets to power large-scale green hydrogen production. The site will feature a hub of different energy generation assets that will enable the facility to produce up to 1.2 million tonnes of green ammonia annually, which will be exported through a purpose-built jetty to global markets, enabling the continuation of global decarbonization efforts.

Among the assets on site will be:

• Wind power: 257 wind turbines will deliver 1.6 GW of clean wind energy
• Solar power: A solar farm the size of Manhattan is being built to generate 2.2 GW of solar capacity
• Transmission grid: A dedicated 4 GW transmission network will be constructed to distribute renewable energy

The groundbreaking project is being developed by the NEOM Green Hydrogen Company (NGHC), a joint venture between ACWA Power, Air Products, and NEOM, with Air Products serving as the primary EPC contractor and system integrator. They will also be responsible for the engineering, procurement, and construction processes of both the hydrogen and ammonia facilities.

The project will position the Kingdom as a global leader in the renewable energy sector

Air Products will hold the exclusive 30-year offtake rights for all green ammonia produced, and the company will reap the benefits of the EPC agreement, which is valued at around $6.7 billion. The solar and wind farms, along with the transmission grid, will be the responsibility of the EPC contractor, Larsen & Toubro (L&T).

The Kingdom has stated that the project remains on schedule and has the potential to revolutionize the energy sector across the world. An update states that 4 GW of solar and wind power generation is set for completion by mid-2026, after that comes the commissioning of the electrolysers and first ammonia product availability in 2027.

The hydrogen sector has seen significant investments in the past few years that equate to billions of dollars. The NGHC released a statement updating the progress being made in the project.

“In May 2023, NGHC achieved a landmark financial close of $8.4 billion, supported by a $6.1 billion non-recourse loan from 23 local, regional, and international banks and financial institutions, including 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

Thanks to the NEOM hydrogen project, hydrogen remains the best choice for the fuel of the future

The world is acutely aware that the reliance on fossil fuels needs to come to an end. As such, several projects around the world have made significant progress in the hydrogen sector thanks to a renewed sense of the global mortality that is ever-present in modern-day society. Thanks to projects like the NEOM Green Hydrogen Project, the International Energy Agency has forecasted significant growth for low-emission hydrogen projects across the world. The evidence would suggest that hydrogen remains the best alternative to fossil fuels and will most certainly become the “fuel of tomorrow”.