With an initial production of up to 600 metric tons of green hydrogen per day, the NEOM Green Hydrogen Company (NGHC) facility, located near Oxagon, will be the largest commercial-scale green hydrogen production facility in the world, saving 5 million metric tons of CO2 yearly.
The pursuit of development will pave the way for HRH Crown Prince Mohammed bin Salman's goals of economic diversification and sustainable energy.
The building of this state-of-the-art facility would cost SAR 31.5 billion, of which SAR 22.9 billion would come from financial sources, according to NGHC
NEOM, Kingdom of Saudi Arabia, In order to achieve His Royal Highness Crown Prince Mohammed bin Salman's vision of diversifying the economy and laying the groundwork for the Kingdom's goal of achieving net zero emissions by 2060, 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.
The largest commercial-scale green hydrogen generation facility in the world will be the NEOM Green Hydrogen Company (NGHC) facility being constructed in Oxagon. Once completed in 2026, it will initially be able to export 600 metric tons of green hydrogen daily, preventing up to 5 million metric tons of CO2 emissions annually.
NEOM, ACWA Power, and Air Products' equal joint venture, NGHC, highlighted a total of SAR 22.9 billion in financing secured from 23 financial institutions, including the Saudi Industrial Development Fund (SIDF), the National Infrastructure Fund (NIF), as well as local and foreign banks, during the announcement of its recent financial close. This funding represents not only a significant step toward realizing the worldwide goals of NGHC but also a show of support from partners and financiers for NEOM as a platform for carbon-conscious investing and an incubator for renewable energy solutions.
The recent accomplishment of numerous significant enabling milestones by NEOM is consistent with the ambition of Saudi Arabia's Energy Minister, HRH Prince Abdulaziz bin Salman, to become a major exporter of hydrogen to the rest of the world.
"NEOM is committed to addressing global challenges, which include minimizing carbon emissions through the advancement of clean energy solutions like green hydrogen," stated Nadhmi Al-Nasr, Chief Executive Officer of NEOM and Chairman of NEOM Green Hydrogen Company. NEOM is making investments in technological and commercial innovations that will aid in the world's transition to clean and sustainable energy, along with our partners Air Products and ACWA Power. Through this endeavor, we will generate employment, draw in and nurture both domestic and foreign talent, and support the Kingdom's economic diversification.
The NGHC was chosen for Oxagon because of its natural resources, strategic coastal position, and prospect for industrial efficiency as a result of its proximity to supporting cutting-edge facilities and future tenants headquartered there. Oxagon is the hub of advanced and clean industries in NEOM.
With NGHC serving as the manufacturing eco-system's renewable energy flagship tenant within Oxagon, there are already upstream and downstream localization prospects arising. The research and innovation hub of Oxagon is already home to NEOM's Hydrogen Innovation and Development Center (HIDC). HIDC, which was announced in 2022, aims to hasten the development of commercial products and businesses in the fields of hydrogen and green fuel production, use, and transportation.
The land preparation was finished and turned over to NGHC by NEOM. The first teams from NGHC have already arrived on site, making them the first tenant workforce in Oxagon, and construction of the facility is well under way.
The production of electricity using fossil fuels is the main cause of carbon emissions and global warming. The amount of green hydrogen produced by NGHC could directly reduce carbon emissions by up to 5 million metric tons of CO2 annually and assist in the indirect decarbonization of a number of different industries and sectors. According to reports, green hydrogen could account for 12% of the world's energy supply and have a regional market value of up to SAR 750 billion by 2050.
