Saudi green hydrogen firm says NEOM plant is near completion

Saudi Arabia is on track to complete construction next year of the world’s biggest green hydrogen production plant.

Now the question becomes whether the oil-rich kingdom can round up enough customers to justify the mammoth cost of producing the eco-friendly fuel at its new Oxagon industrial city.

NEOM Green Hydrogen Co. – a joint venture of NEOM, Acwa Power and U.S.-based Air Products – said in a statement on Tuesday that more than 80% of the project has been completed.

The company released an accompanying video highlighting features that include a 250-turbine wind garden, a vast solar farm and a dedicated transmission grid. 

With construction of the $8.4 billion facility due to be completed by mid-2026, the company said it would be ready to export green ammonia, which can be converted into hydrogen to generate electricity, in 2027.

The nascent energy industry, however, faces challenges of high production costs and a lack of immediate demand to fuel its anticipated growth.

So far, Paris-based TotalEnergies is NEOM Green Hydrogen’s only committed customer, Bloomberg reports.