Saudi Arabia is gearing up for the official launch of the futuristic NEOM Green Hydrogen Company, part of the Kingdom’s initiatives towards green transformation.
On the sidelines of the United Nations Conference of the Parties (COP29) in Azerbaijan, the CEO of NEOM Green Hydrogen Company (NGHC), Wesam Al-Ghamdi, announced that the largest green hydrogen plant in the world is set to become operational in December 2026.
Ambitious Green Hydrogen Project
Speaking to Arab News, Al-Ghamdi said that 60% of the plant is complete, reaffirming the project’s significance in driving Saudi Arabia’s push for harnessing renewable energy, in line with the transformative Vision 2030 objectives.
The NGHC’s CEO highlighted the scale of the ambitious project, saying that it “is being built at a scale no one has attempted before.” Al-Ghamdi added that the new green hydrogen plant aims to generate hydrogen continuously, by using solar and wind energy to power a 2.2-gigawatt electrolyzer.
Saudi Arabia’s Potential
Saudi Arabia boasts a diverse array of renewable energy sources, including solar, wind, and hydropower. This abundancy gives the Kingdom a competitive edge in regards to the production costs.
In the light of this, Al-Ghamdi pointed out that the NGHC’s utilization of Saudi Arabia’s abundant solar and wind energy sources reduces the costs of production, which play a critical role in making green hydrogen more commercially viable.
In the light of this, Al-Ghamdi said: “We have the abundance of solar and wind, so we have that renewable power competitive advantage,” noting that the large scale of NEOM’s plant facilitates the efficient production at a cost level that only few projects can match on a global level.
Green Hydrogen
Green hydrogen offers a zero-emission alternative for other energy sources. Its production process involves splitting water into hydrogen and oxygen by using renewable energy sources such as wind and solar power. Hence, it does not produce greenhouse gases.
Green hydrogen has emerged as a reliable solution in the fight against climate change as it can be utilized in various industries that depend heavily on fossil fuels, from heavy industries to steel production and transportation.
The NGHC boasts a strategic location in NEOM, in the Red Sea Development Zone northwest of Saudi Arabia. This provides a steady flow of solar and wind energy sources at a low cost.
Global Reach
NGHC aspires to supply international markets. Through its 30-year offtake agreement with Air Products, the company has secured a pathway for its hydrogen to reach global markets in the form of ammonia, which is easier to transport and distribute.
This move demonstrates the company’s carefully curated plans to meet the projected demand from various sectors, such as heavy transport and industrial manufacturing. With regards to this, Al-Ghamdi said: “We have the scale, location, and the partnerships in place that give us a significant lead.”
Empowering Saudis
The NEOM Green Hydrogen Company is contributing to strengthening the Saudi labor market by providing several job opportunities for Saudi citizens. In the light of this, Al-Ghamdi underscored the importance of the project in boosting Saudi expertise in the green energy sector.
He pointed out that more than 60% of NGHC’s staff are Saudi citizens, including experienced professionals and fresh graduates. Moreover, the company is forging partnerships with Saudi universities and providing special training programs to fill the highly technical roles needed to operate such a large facility.
Al-Ghamdi said: “Our goal isn’t just to produce hydrogen but to build a foundation of expertise here in Saudi Arabia.” He further noted that the project aims to build a lasting skills base in Saudi Arabia.
