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NEOM commits $8.4 billion to construct green hydrogen plant

NEOM Green Hydrogen Company (NGHC) has set an ambitious target to produce 600 tons of green hydrogen per day by the conclusion of 2026.

NEOM commits $8.4 billion to construct green hydrogen plant
[Source photo: Anvita Gupta/Fast Company Middle East]

Saudi Arabia is committed to shifting towards renewable energy sources to fulfill at least 50% of its energy requirements through clean energy by 2030. As a significant step towards achieving this objective, NEOM Green Hydrogen Company (NGHC) has successfully entered into an investment agreement worth $8.4 billion with 23 domestic, regional, and international banks and investment firms. The purpose of this agreement is to establish a state-of-the-art facility for the production of green hydrogen.

The funding for the project will be provided by the National Development Fund (NDF) through the Saudi Industrial Development Fund (SIDF) and the National Infrastructure Fund (NIF), in addition to contributions from local and international banks. The plant’s construction is underway in Oxagon, located in NEOM.

The National Development Fund (NDF) will assume a crucial role in implementing Saudi Arabia’s Vision 2030 transformation plan, which entails a significant investment of over SAR570 billion ($152 billion). This substantial investment aims to enhance the private sector’s contribution to the country’s Gross Domestic Product (GDP) from 40% to 65%. Furthermore, it seeks to triple the contribution of non-oil exports to the non-oil GDP, raising it from 16% to 50%.

NCHC, a collaborative venture involving ACWA Power, Air Products, and NEOM, is dedicated to producing green hydrogen. By leveraging 4 GW of solar energy, NCHC aims to achieve an impressive daily output of 600 tons of green hydrogen by 2026.

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