NEOM, Saudi Arabia’s $500 billion futuristic city, has announced “a clear path” to produce green hydrogen at the megaproject in order to meet the kingdom’s plan to reach net zero emissions by 2060.
The plan was set by Saudi Arabia’s Prime Minister, and NEOM Company Chairman of the Board of Directors Crown Prince Mohammed bin Salman.
Currently being built in Oxagon, the NEOM Green Hydrogen Company (NGHC) is aimed at being the world’s largest commercial-scale green hydrogen production facility.
It will begin operations in 2026, and will also produce 600 tonnes of green hydrogen per day, initially, and will be available for global export, saving as much as 5 million tons of carbon dioxide emissions per year.
“NEOM is committed to addressing global challenges, which includes minimizing carbon emissions through the advancement of clean energy solutions such as green hydrogen. Along with our partners Air Products and ACWA Power, 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,” NEOM Green Hydrogen Company chief executive Nadhmi Al-Nasr said.
NGHC recently announced the successful closure of its financial agreements, securing SAR22.9 billion in funding from various financial institutions.
The joint venture between NEOM, ACWA Power, and Air Products received support from 23 institutions, including the Saudi Industrial Development Fund (SIDF), National Infrastructure Fund (NIF), and local and international banks.
This funding not only marks a significant milestone for NGHC but also demonstrates the confidence of partners and financiers in NEOM as a hub for renewable energy solutions and carbon-conscious investments.
The Saudi mega project’s progress towards achieving key milestones aligns with the vision of Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, to position the country as a leading exporter of hydrogen worldwide.
NGHC chose Oxagon, NEOM’s advanced and clean industries hub, as the location for its operations. The decision was based on Oxagon’s strategic coastal position, abundant natural resources, and the advantages of being in close proximity to cutting-edge facilities and future tenants within the manufacturing ecosystem being developed there.
As the flagship tenant in Oxagon’s manufacturing ecosystem, NGHC’s presence is already generating opportunities for downstream and upstream localisation.
NEOM’s renewable energy initiatives
NEOM’s Hydrogen Innovation and Development Center (HIDC), situated in Oxagon’s research and innovation district, aims to accelerate the development and commercialisation of hydrogen-related solutions and businesses.
It has completed land preparation and transferred it to NGHC, enabling the company to proceed with construction. The first NGHC teams are already on-site, making them the pioneering workforce in Oxagon.
The production of electricity using fossil fuels is a major contributor to global carbon emissions and climate change. NGHC’s green hydrogen production has the potential to directly reduce carbon emissions by up to 5 million tons of CO2 per year and facilitate the decarbonisation of various industries and sectors.
Experts predict that green hydrogen could account for 12 percent of the global energy mix, with the regional green hydrogen industry reaching a value of up to SAR750 billion by 2050.
NGHC’s significant financing and progress in NEOM’s renewable energy initiatives highlight the growing importance of sustainable solutions and underline NEOM’s position as a catalyst for clean and innovative industries.
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