NEOM has made qualitative progress in supporting the green hydrogen production industry on a large scale and exporting it to global markets. This comes as a confirmation of the role it plays in achieving the vision of economic diversification led by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Prime Minister, and Chairman of the NEOM Company Board of Directors, and paving the way for the Kingdom to reach carbon neutrality by 2060.
In a significant step within its objectives to invest in green energy industries and develop advanced solutions to global challenges, NEOM has recently announced the completion of the financial closure for the establishment of the NEOM green hydrogen plant of the NEOM Green Hydrogen Company (NGHC), resulting from an equal partnership between NEOM, ACWA Power, and Air Products and Chemicals, Inc.
The total investment for the project amounted to SAR31.5 billion, of which SAR22.9 billion was funded by 23 financial institutions, including the National Infrastructure Fund (NIF) and the National Development Fund (NDF), in addition to local and international banks.
This financing will strengthen the confidence of partners, financiers, and investors in NEOM as an incubator for developing renewable energy solutions and a leading hub for environmentally friendly investments that contribute to reducing the carbon footprint.
The NGHC's plant, built in Oxagon, is set to become the world's most significant green hydrogen production facility for commercial use. It is estimated to produce 600 metric tons of green hydrogen per day, to be exported to various countries worldwide once operated in 2026 AD; This will reduce 5 million tons of carbon dioxide annually.
The Oxagon - the home of advanced and clean industries in NEOM - was chosen to be the headquarters of the NGHC due to its abundance of natural resources and its strategic location on the coast of NEOM.
In 2022, NEOM announced, through its subsidiary company Enowa, the establishment of the first Hydrogen and Innovation Development Center (HIDC), which will accelerate the introduction of new technologies to the market after their development stage in the laboratories, and the production, marketing, use, and transfer of green hydrogen fuel products.
These recent developments in NEOM align with the endeavours of Prince Abdulaziz bin Salman bin Abdulaziz, the Saudi Energy Minister, to transform the Kingdom into a major exporter of green hydrogen to the world.
Source: Saudi Press Agency