The NEOM Green Hydrogen Project, located in northwestern Saudi Arabia, is one of the most ambitious clean-energy initiatives in the world. Designed to be a cornerstone of Saudi Arabia’s Vision 2030, the project aims to scale green hydrogen production at industrial levels for global export and decarbonization.
The project is owned by NEOM Green Hydrogen Company (NGHC), an equal joint venture between three entities: NEOM (Saudi Arabia’s futuristic megacity developer), ACWA Power, and Air Products. Its total investment is approximately USD 8.4 billion, backed by a consortium of 23 regional, local, and international banks.
Air Products, apart from being a joint-venture partner, also serves as the EPC (engineering, procurement, and construction) contractor and system integrator. It has secured a 30-year offtake agreement to buy all the green ammonia that NGHC will produce.
The NEOM facility is being powered by renewable energy at scale. The plan calls for around 4 GW of combined solar and wind capacity, along with battery storage, to support the hydrogen production operation. The hydrogen will be produced via water electrolysis, using electrolyzer technology to split water into hydrogen and oxygen.
This hydrogen is then converted into green ammonia, which is easier to transport and store. When fully operational, the plant is expected to produce up to 600 tonnes of green hydrogen per day, equivalent to about 1.2 million tonnes of green ammonia per year.
The switch to green hydrogen and green ammonia is projected to avoid approximately 5 million tonnes of CO₂ emissions annually compared to conventional, fossil-based ammonia production. By sourcing power from renewables, the project is tightly aligned with global decarbonization efforts and Saudi Arabia’s sustainability goals.
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Timeline & Construction Progress
- Financial Close: The project achieved financial close in May 2023, finalizing its $8.4 billion financing.
- Construction: As of early 2025, NGHC reported 80% construction completion across key components — the hydrogen plant, wind farm, solar arrays, and transmission infrastructure.
- Renewables Completion: The 4 GW of wind and solar capacity is expected to be fully installed by mid-2026.
- Commissioning & First Output: Electrolyzer commissioning is scheduled soon after renewables completion, with the first green ammonia shipments targeted for 2027.
- Daily Production Goal: Once operational, the plant aims for 600 tonnes/day of green hydrogen by the end of 2026.
The NEOM Green Hydrogen Project is not just an energy project, it’s a geopolitical and industrial play. Its output will supply global markets, with ammonia aimed at being exported to hard-to-decarbonize regions. The long-term offtake deal gives the project economic stability, while the scale of renewables and hydrogen positions Saudi Arabia as a major clean energy exporter.
As one of the largest green hydrogen facilities globally, NEOM could set a benchmark for similar projects. If it hits its targets, it will provide a powerful template for integrating large-scale renewables with clean hydrogen production, helping accelerate the global clean-energy transition.
