Saudi Arabia’s $8 billion Neom green hydrogen complex project is nearing completion

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As reported by ***Gulf Business Insights** (AGBI) on February 5, Saudi Arabia’s Neom green hydrogen complex project, worth $8 billion, is nearing completion, and negotiations regarding an important ammonia export agreement are also in their final stages. 　　Neom Green Hydrogen Company (NGHC) is a joint venture formed by Air Products & Chemicals, a U.S.-listed industrial gases supplier, Acwa Power, a Saudi Arabian listed renewable energy company, and Neom, with the aim of building the world’s largest green hydrogen plant. 　　Both Acwa and Neom have received support from the Saudi Public Investment Fund (PIF). 　　Green hydrogen is a clean fuel produced by generating electricity from renewable energy sources. It provides a low-carbon alternative for heavy industry and long-distance transportation. The Gulf region boasts abundant sunlight and land resources, which enable the development of affordable renewable energy sources. Its existing energy and export infrastructure also provides advantages for producers. However, it has been difficult to conclude long-term contracts due to the lack of sufficient terminals in most markets to receive fuel at present. 　　In its first-quarter earnings report, Air Products stated that more than 95% of the solar and wind energy infrastructure at the Neom plant has been completed, with operations expected to begin in mid-2027. The company will also reach an agreement with Norwegian Yara International to sell up to 1.2 million tons of green ammonia from Neom each year. 　　Eduardo Menezes, CEO and director of Air Products and Chemicals, said that finalization of the agreement is expected to take place in the first half of 2026. 　　NGHC has signed a 30-year purchase agreement with Air Products to acquire all the green ammonia produced at its $8 billion plant in Neom. But finding buyers is extremely difficult. Last year, plans to supply hydrogen to the UK were delayed due to Air Products’ suspension of the development of an import terminal in Immingham Port, UK, which would have cost 2 billion pounds (2.7 billion dollars). The port was originally planned to receive green ammonia from Neom Company and convert it into hydrogen for use in British industry, but the project was put on hold due to uncertainties surrounding the incentives offered by the UK government. 　　Neom has reached a confirmation agreement with the French energy company TotalEnergies to supply 70,000 tons of ammonia per year from 2030 to 2045 – roughly one-third of the planned production volume. 　　The Neom plant is designed to produce 600 tons of carbon-free hydrogen per day, which will be converted into green ammonia for export. The factory will use wind and solar power of up to 4 gigawatts. Recent hot topics