Saudi Arabia’s Neom Green Hydrogen Project Achieves 60% Completion, Eyes Full Operation by 2026

Saudi Arabia’s ambitious Neom Green Hydrogen Project, hailed as the future of clean energy, is 60% complete and on track to commence full-time operations by late 2026. Located in Oxagon, Tabuk province, the $8.4 billion venture integrates state-of-the-art solar and wind farms to produce 600 tonnes of carbon-free hydrogen daily.

Wesam Alghamdi, CEO of Neom Green Hydrogen Company (NGHC), confirmed the progress, emphasizing that the project’s renewable energy sources are fully dedicated to achieving carbon-free production. "We’re progressing well on all fronts," Alghamdi remarked, highlighting advancements in solar panel installation and electrolyzer construction for hydrogen extraction.

Green Energy Partnership with Global Outreach

A collaboration between Air Products (USA), Aqwa Power, and Neom, the project aims to redefine the hydrogen economy. NGHC has secured a 30-year exclusive off-take agreement with Air Products to convert hydrogen into 1.2 million tonnes of ammonia annually, making it globally exportable.

Alghamdi noted, “The plant is designed to ship to every market, including the EU. All the power is carbon-free, and certification will be handled by Air Products.”

Driving Saudi Arabia’s Vision of Hydrogen Leadership

Saudi Arabia, intent on becoming a global hydrogen leader, recently announced a $10 billion investment into green hydrogen production through its Energy Solutions Company, supported by the Public Investment Fund (PIF). Minister of Investment Khalid Al Falih also revealed plans for additional hydrogen projects managed by PIF.

These developments align with the Hydrogen Council's data, which projects the Middle East to produce 18 million tonnes of hydrogen by 2030. Saudi Arabia’s abundant renewable resources give it a competitive edge in green hydrogen production, essential for hard-to-abate sectors like heavy industry, transportation, and aviation.

Challenges and Opportunities

While optimism surrounds green hydrogen, its current costs remain high, prompting delays and project scale-backs by some companies, including the UAE’s Masdar. Nevertheless, Alghamdi emphasized Neom’s competitiveness, driven by abundant solar and wind resources. “Renewable power becomes cheaper every day. If you pick the right business case and economy of scale, you will find the off-taker,” he added.

Shaping a Cleaner Future

With the global green hydrogen market poised to grow from $160 billion in 2022 to $640 billion by 2030 (Deloitte), Saudi Arabia’s Neom project underscores the nation's commitment to leading the clean energy transition. As Alghamdi aptly put it, “Hydrogen is the fuel for the future.”