Skip to content Skip to Search
Skip navigation

Licence issued for world’s largest green hydrogen plant in Saudi

Investment of nearly $12bn is expected for a pilot phase said Egypt's planning minister Hala El-Said Creative Commons
Investment of nearly $12bn is expected for a pilot phase said Egypt's planning minister Hala El-Said

The first industrial operating licence has been issued for Neom Green Hydrogen Company (NGHC), which aims to run the world’s largest production facility of its kind.

Saudi Arabia’s Ministry of Industry and Mineral Resources announced on Wednesday that the licence has been granted to NGHC, a joint venture between Neom, Acwa Power and Air Products.

The $5 billion project is a key part of Saudi Arabia’s ambitions to become the world’s leading hydrogen producer.

The company is based in Oxagon, Neom’s hub for advanced and clean industries, which plans to feature a next generation port and fully automated and integrated supply chain and logistics network.

It is expected that the NGHC plant will start producing green hydrogen from 100 percent renewable energy sources in 2026, with production of up to 1.2 million tonnes of green ammonia annually – a figure equivalent to 600 tonnes of green hydrogen per day. 

This green ammonia will be exported to global markets, supporting the decarbonisation of the heavy-duty transport sector. It is estimated that as a direct impact of the plant, up to 5 million tonnes of CO2 will be saved per year.

The multi-billion dollar plant will run on 4GW of wind and solar energy and produce green hydrogen using 2.2GW electrolysis technology.

Last month, NGHC signed facility agreements with local, regional and international banks and completed a commitment letter with the Saudi Industrial Development Fund for the project. 

The financing is structured with significant participation from the Saudi Industrial Development Fund and the National Infrastructure Fund.

The licence announcement comes as the GCC is forecast to play a key role in the global hydrogen market.

A report published by Frost & Sullivan earlier this month paints a picture of huge opportunity for the region. It said that with GCC countries seeking to achieve energy sustainability through a combination of renewable energy integration, energy-efficiency implementations and hydrogen production and transport, the region’s energy sector is set for “wide-scale evolution”.

“Hydrogen has gained increasing recognition as a key contributor to the evolution of the energy sector and is expected to play a key role in decarbonising the economy across end-use sectors in the GCC,” the report noted.

GCC countries currently use large quantities of natural gas-based grey hydrogen. The availability of low-cost natural gas, coupled with the ease of carbon capture, use and storage allows for the cost-competitive production of blue hydrogen.

The region has several competitive advantages to also play a key role in the global green hydrogen economy, said Frost & Sullivan, including solar and wind resources, financial capabilities and export potential.

Global investment in hydrogen is forecast to reach $500 billion by 2030, far short of the $1.2 trillion required to reach long-term net zero goals.

Latest articles

Flooding in Dubai affected many people's homes. Emaar has promised .free repairs for its residents, and an upgraded sewerage system is planned

Emaar promises free repairs as Dubai launches sewerage system

Emaar Properties is offering free repairs to residents whose homes were damaged during this week’s extreme flooding, as Dubai also announced an AED80 billion ($22 billion) sewerage system. The developer announced on Friday that it would repair all homes in its communities affected by the historic levels of rain, “at no cost to residents”. Emaar’s […]

A customer paying with a credit card inside the Black Friday Market in Beirut. Lebanon wants more people to move away from cash

Lebanon launches plan to promote use of bank cards

Lebanese central bank Banque du Liban announced a new agreement on Thursday that it hopes will result in a rebound in the use of bank cards. As part of the agreement, Mastercard and Visa will lower card fees on transactions, particularly for people with bank accounts based outside Lebanon. In a press release, the bank […]

Construction work in Kuwait. Nurseries, schools and shops are being built for the new residential district of Al Metlaa

Kuwait signs $140m contracts for Al Metlaa development

Kuwait’s Public Authority for Housing Welfare (PAHW) has signed two contracts worth KD42 million ($140 million) to construct public buildings in Al Metlaa, a new residential district north of Kuwait City. Nurseries, stores, schools and shops will be included, state news agency Kuna reported. Electricity connections have been provided for 109 buildings in the district, […]

Workers at Cano Limon oil field in eastern Colombia. Oil is one of the country's largest exports

UAE strikes Colombia deal to strengthen Latin American links

The UAE has strengthened trade relations with Latin America after signing a comprehensive economic partnership agreement with Colombia, just days after a Cepa deal was struck with Costa Rica. Officials from the UAE and Colombia put pen to paper on an agreement that will cut tariffs and remove trade barriers between the two countries. UAE […]