Saudi Arabia's ACWA Power Completes Construction of NEOM's $8.5 Billion Green Hydrogen Project

en.Wedoany.com Reported - Saudi Arabia's NEOM green hydrogen project has largely completed construction and is currently undergoing facility electrification and system commissioning, with commercial operation planned for 2027. The project has a total investment of $8.4 billion and is being developed by NEOM Green Hydrogen Company, jointly established by ACWA Power, Air Products, and NEOM.

The project is located in NEOM's Oxagon industrial zone, featuring supporting solar and wind power generation facilities with a combined capacity of up to approximately 4 gigawatts, and will produce green hydrogen through water electrolysis systems. Once fully operational, the project is planned to produce up to 600 tons of carbon-free hydrogen per day, which will be further processed into green ammonia with an annual output of approximately 1.2 million tons, targeting international markets for export.

The entire facility includes a photovoltaic power station, wind farm, transmission network, water electrolysis hydrogen production units, air separation units, as well as ammonia production and storage/transportation systems. The project previously reached 80% overall construction progress in early 2025, with completion rising to 90% in March 2026, followed by the final phase of renewable energy facility completion, system electrification, and electrolyzer commissioning.

NEOM Green Hydrogen Company completed project financing in 2023, securing $6.1 billion in non-recourse financing from 23 local, regional, and international financial institutions. Air Products is responsible for the project's engineering, procurement, and construction as well as system integration, with an EPC contract valued at $6.7 billion.

The project has also signed a 30-year exclusive offtake agreement with Air Products, which will purchase all of the green ammonia produced after commissioning. With major construction now complete, the current focus has shifted to integrated system commissioning, equipment performance verification, and commercial operation readiness.