Saudi Arabia's $8.4 Billion NEOM Green Hydrogen Project Completes Construction, Enters Commissioning Phase
2026-08-13 10:46
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en.Wedoany.com Reported - Saudi Arabia's $8.4 billion NEOM green hydrogen and green ammonia project has completed construction and has now entered the commissioning phase, with first product supply planned for 2027. Once operational, the project will produce 600 tonnes of green hydrogen per day, which will be converted into green ammonia, with a designed annual capacity of up to 1.2 million tonnes.

Saudi Arabia completes construction of the world's largest integrated green hydrogen and ammonia facility.

Located in Oxagon, within the NEOM industrial zone in northwestern Saudi Arabia, the project is being developed by NEOM Green Hydrogen Company, jointly established by NEOM, ACWA Power, and Air Products, with each holding approximately 33.3% equity. Air Products serves as the project's EPC contractor and will offtake the green ammonia produced by the project under a long-term offtake arrangement.

The project comprises approximately 4 GW of renewable energy facilities, over 2 GW of electrolyzer capacity for hydrogen production, as well as air separation, hydrogen storage, ammonia synthesis, and export facilities. Among these, the solar PV plant has an installed capacity of approximately 2.2 GW; the wind farm is equipped with 257 wind turbines, with an installed capacity of approximately 1.6 GW; and a supporting transmission system is responsible for delivering solar and wind energy to the green hydrogen production facilities.

The hydrogen production process utilizes thyssenkrupp Uhde Chlorine Engineers' alkaline water electrolysis technology. Air Products is responsible for supplying process equipment such as air separation units. The project also includes hydrogen storage tanks, cold boxes, pipe racks, and a green ammonia export terminal, forming a complete production chain from renewable energy generation and water electrolysis for hydrogen production to green ammonia synthesis, storage, transportation, and export.

NEOM Green Hydrogen Company completed project financing in 2023, with total financing of $8.4 billion, including approximately $6.1 billion in non-recourse project financing, with 23 local, regional, and international financial institutions participating. The project has also signed a 30-year green ammonia offtake agreement, under which Air Products will offtake all production and supply it to international markets.

In early 2025, overall project construction progress reached approximately 80%, with major equipment such as wind turbines, electrolyzers, hydrogen storage vessels, cold boxes, and pipe racks having been delivered to the site and installed. With the construction phase now complete, the project's focus has shifted to subsystem commissioning and integrated testing of the renewable energy systems, electrolyzers, air separation units, ammonia production lines, and export facilities.

According to the project developer's announced plan, the NEOM green hydrogen and green ammonia project will supply its first products in 2027. Once reaching designed capacity, the project will produce up to 1.2 million tonnes of green ammonia annually, which will be shipped to international markets via a dedicated terminal.

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