A massive project aiming to create the world’s largest green hydrogen plant has reached a major milestone, with 80% of construction now finished across all its sites. This ambitious undertaking, being built at Oxagon in NEOM, is on track to change how the world gets its clean energy. The plan is for the main equipment to start running and for the first batches of ammonia, made from green hydrogen, to be ready by 2027, reports Chemanalyst.news.
This groundbreaking project is a shared effort between ACWA Power, Air Products, and NEOM, and it’s moving forward quickly. Key pieces of equipment are now arriving and being carefully put into place. This includes huge wind turbines, large tanks for storing hydrogen, advanced machines that separate hydrogen from water, a crucial cooling unit, and extensive pipe systems. The entire setup also features a vast wind farm, a sprawling solar power plant, and a strong electricity network, all essential for the plant to run smoothly. The 4 gigawatts of solar and wind power that will fuel the facility are expected to be fully operational by mid-2026, setting the stage for the next stages of getting the plant ready.
Once fully operational, this enormous plant is set to produce an astounding 600 tonnes of carbon-free hydrogen per day by the end of 2026, mainly in the form of green ammonia. This huge amount of clean fuel is seen as an affordable and environmentally friendly solution for transportation and industries worldwide, offering a real path towards significantly reducing carbon emissions. This commitment is further solidified by an exclusive 30-year agreement with Air Products, which will ensure the financial health of the project and the global distribution of the green ammonia produced. This long-term partnership shows strong confidence in the project’s ability to unlock the full economic benefits of renewable energy at every step of the process.
The financial side of this colossal project is equally robust. In May 2023, the NEOM Green Hydrogen Company successfully completed a major financial deal worth $8.4 billion. This substantial funding was boosted by a significant $6.1 billion loan, secured from a group of 23 important local, regional, and international banks and financial organizations, including key players like the Saudi Industrial Development Fund and the National Investment Fund.
This pioneering green hydrogen initiative is a direct and powerful example of Saudi Arabia’s “Vision 2030” goals. It represents a crucial step towards diversifying the country’s economy away from traditional fossil fuels and establishing Saudi Arabia as a global leader in clean energy production. By leading the development of the world’s top hydrogen production abilities, the NEOM Green Hydrogen Company is not only strengthening Saudi Arabia’s important role in the global energy sector but also paving the way for a more sustainable and environmentally conscious future for the entire world.
