May 24, 2023
NEOM Accelerates Progress Towards Green Hydrogen Future
- Located in Oxagon, the NEOM Green Hydrogen Company (NGHC) facility will be the largest commercial-scale green hydrogen production facility in the world, with initial production of up to 600 tonnes of green hydrogen per day, saving 5 million tonnes of CO2 annually.
- Development will pave the way to meet the economic diversification and clean energy visions of HRH Crown Prince Mohammed bin Salman
- NGHC announces SAR 31.5 billion investment for the creation of this cutting-edge facility, including SAR 22.9 billion from financing providers
NEOM, Kingdom of Saudi Arabia, May 24, 2023 – NEOM, the sustainable regional development in northwest Saudi Arabia, has outlined a clear path towards the at-scale production of green hydrogen in NEOM for the global market, playing a key role to meet His Royal Highness Crown Prince Mohammed bin Salman, Crown Prince, Prime Minister and Chairman of the NEOM Company Board of Directors’ vision to diversify the economy and pave the way for the Kingdom’s plan to reach net zero emissions by 2060.
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. Once operational in 2026, it will produce an initial 600 tonnes of green hydrogen per day, which will be available for global export, saving as much as 5 million tonnes 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.
Nadhmi Al-Nasr, Chief Executive Officer, NEOM and Chairman, NEOM Green Hydrogen Company, said: “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.”
Oxagon, the home of advanced and clean industries in NEOM, was selected as the location for NGHC due to its natural resources, strategic coastal location and the opportunity for industrial efficiency as a result of proximity to supporting cutting-edge facilities and future tenants based there.
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 tonnes 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% of the global energy mix and the regional green hydrogen industry worth up to SAR 750 billion by 2050.