Saudi-based Neom Green Hydrogen firm granted operational license

In the heart of Neom, a futuristic city in Saudi Arabia, a significant development is underway. The Neom Green Hydrogen Company (NGHC), a joint venture between Acwa Power, Air Products, and Neom, is set to become a global leader in green hydrogen production.

The exact identity of the project's leader remains undisclosed, but what is clear is that Baker Hughes has been selected as the technology partner for hydrogen compression at NGHC. Air Products, a global industrial gases leader, will also deploy air separation technology at the plant.

The construction of NGHC is part of Neom's ambitious vision to lead in the renewable energy sector. Saudi Arabia aims to catalyse the global hydrogen economy by becoming the world's leading hydrogen producer while maintaining its position in the energy sector.

Once operational in 2026, the plant will run on around 4GW of wind and solar energy and produce green hydrogen using 2.2GW electrolysis technology supplied by thyssenkrupp Nucera. Haldor Topsoe will provide technology for green ammonia production at NGHC.

NGHC's green hydrogen production from 100% renewable energy is expected to start in 2026. The plant will have an annual production capacity of up to 1.2 million tonnes of green ammonia, equivalent to 600 tonnes of green hydrogen per day.

Once operational, the plant will be located at Oxagon, home to advanced and clean industries within Neom, with a next-generation port and fully automated and integrated supply chain and logistics network. Once completed, NGHC will be the largest at-scale green hydrogen production company in the world.

The green ammonia produced by NGHC will be exported to global markets to support the decarbonization of the heavy-duty transport sector. Neom's ambition is to develop innovative sustainable solutions to address key global challenges, with climate change being the foremost.

The Ministry of Industry and Mineral Resources and Modon have signed a memorandum of understanding with Oxagon to cooperate in the implementation of the Future Factories Program. This program aims to build a sustainable digital transformation ecosystem for the manufacturing sector in the kingdom, remodelling 4,000 existing factories, in line with Saudi Vision 2030 and the NIDLP.

It is estimated that up to 5 million tonnes of CO2 will be saved per year as a direct impact of the NGHC plant. This initiative aligns with Saudi Arabia's commitment to reducing carbon emissions and supporting the global transition towards a sustainable energy future.

In conclusion, the Neom Green Hydrogen Company (NGHC) is a significant step towards Saudi Arabia's goal of becoming a global leader in the hydrogen economy. The plant, once operational, will not only contribute to Neom's efforts to achieve its ambitious vision but also play a crucial role in the global decarbonization efforts.