Saudi Arabia completes construction of $8.5 billion green hydrogen project

Saudi utility company ACWA Power and US-based Air Products have completed construction of the $8.5 billion green hydrogen project at Oxagon in NEOM, with commercial operations expected to begin in 2027.

The NEOM Green Hydrogen Company (NGHC), a joint venture between ACWA Power, Air Products and NEOM, is now commissioning the facility, ACWA Power CEO Samir Serhan said during a recent earnings call with analysts and investors.

Once operational, the project is expected to become the world’s largest green hydrogen plant, producing up to 600 tons of carbon-free hydrogen per day. The hydrogen will be converted into green ammonia for export to international markets.

The project is designed to demonstrate the commercial-scale production of green hydrogen using renewable energy, with its output powered by a combination of solar and wind generation.

NGHC said in March that the project’s renewable energy assets, including its wind farm, solar farm and transmission network, were about 95% complete.

“The project remains on schedule, with up to 4 GW of combined solar and wind power generation targeted for completion by mid-2026, followed by commissioning of the electrolyzers and first green ammonia product availability planned for 2027,” the company stated.

The project forms part of Saudi Arabia’s broader efforts to establish a competitive clean-energy industry and develop new export markets as the Kingdom diversifies its economy under Vision 2030. It is also expected to provide a reference point for future large-scale hydrogen developments as countries and companies explore lower-carbon alternatives for hard-to-abate industries and seek to build international supply chains for clean fuels.