NEOM Green Hydrogen Project is aimed at establishing one of the world's largest factories for producing and generating green hydrogen, which is considered a clean and renewable energy source, with a production capacity of approximately 1.2 million t annually by 2026, and then exporting it to global markets. Upon completion, the project aims to reduce carbon dioxide emissions by approximately three million t annually. It is located within the NEOM area, one of the major projects in the Kingdom of Saudi Arabia.
Three global partnerships are involved in developing and implementing the Green Hydrogen Project: NEOM Company, ACWA Power, and Air Products, through a joint agreement signed on July 7, 2020.
The project utilizes modern technologies and systems for generating clean energy, aiming to lead the renewable energy sectors in the future. This initiative positions the Kingdom as a leader in global development, contributing to achieving the goals of Saudi Vision 2030 by diversifying the sources of the local economy's income without relying solely on oil and natural gas.
Objectives of NEOM Green Hydrogen Project
NEOM Green Hydrogen Project aims to generate over four GW of electricity using renewable energy sources such as solar and wind power, along with storage. It also aims to produce approximately 650 t of green hydrogen per day, which contributes to climate change mitigation and increases employment opportunities.
Green hydrogen uses
Green hydrogen production serves as a fuel source for various transportation modes and power stations. Additionally, it is utilized as a green feedstock in several industries such as cement, steel, and fertilizer production. Furthermore, it forms the basis for green chemicals, circular carbon economy, and green fuel.
The site of the green hydrogen plant
The plant owned by NEOM Green Hydrogen Company (NGHC), currently under construction in Oxagon, is set to become the world's largest facility for producing green hydrogen for commercial use. The Oxagon area, home to advanced and clean industries in NEOM, was chosen as the headquarters for the NEOM Green Hydrogen Company due to its abundance of natural resources and its strategic location on the NEOM coast. This location, alongside the many opportunities that enhance manufacturing capabilities due to its proximity to a number of advanced and supportive facilities, aims to attract more companies to establish their presence in Oxagon.
In 2022, NEOM, through its subsidiary ENOWA Limited, announced the establishment of the first Hydrogen Innovation and Development Center (HIDC) located at the Innovation and Research Center in the city of Oxagon. This center aims to expedite the introduction of new technologies to the market after their development phase in laboratories, as well as the production, marketing, use, and transportation of green hydrogen fuel products.
The preparation of the site for the NEOM Green Hydrogen Company has been completed, along with the completion of procedures for transferring its management from NEOM. Work on constructing the plant is underway, while the company's team has begun operations on the ground, becoming the first entity to commence its activities among those that have secured a location in Oxagon.
While generating electricity through fossil fuels is a major source of carbon emissions and global warming, the amount of green hydrogen that NEOM Green Hydrogen Company will produce is expected to help reduce the carbon footprint across various industrial sectors. Reports indicate that green hydrogen could account for 12 percent of the global energy mix, with its market size in the region reaching approximately SAR750 billion by 2050.
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