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Thursday, December 26, 2024
Thursday December 26, 2024
Thursday December 26, 2024

Saudi Arabia’s NEOM green hydrogen plant set to lead global market by 2026

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The world’s largest green hydrogen facility, 60% complete, is on schedule for its December 2026 launch as Saudi Arabia drives forward with Vision 2030

The ambitious NEOM Green Hydrogen Company (NGHC) of Saudi Arabia is making significant progress towards transforming the global energy sector. With CEO Wesam Al-Ghamdi confirming that the world’s largest green hydrogen plant in NEOM is on track for a December 2026 launch, this cutting-edge project, already 60% complete, aims to leverage Saudi Arabia’s vast renewable resources to lead the green hydrogen market.

Speaking to Arab News at the United Nations Climate Change Conference (COP29) in Baku, Al-Ghamdi emphasised the scale and ambition of the project. “This is a facility like no other—built at an unprecedented scale, leveraging solar and wind energy to power a 2.2 gigawatt electrolyser,” he explained. This massive infrastructure is poised to continuously produce green hydrogen, a cleaner alternative that emits zero greenhouse gases.

Green hydrogen, which is produced through the process of electrolysis using renewable energy, is increasingly viewed as a critical solution in reducing the world’s carbon footprint. Unlike conventional methods reliant on fossil fuels, this technology offers a pathway for industries to decarbonise, particularly in sectors like heavy transport, steel manufacturing, and other energy-intensive applications. As nations face mounting pressure to meet climate targets, green hydrogen has emerged as a pivotal component in achieving sustainable energy transitions.

Al-Ghamdi highlighted the advantages that set NGHC apart from global competitors. The NEOM project draws its strength from Saudi Arabia’s abundant solar and wind resources, which significantly reduce production costs. “Our access to renewable power here in NEOM gives us a competitive edge. We can produce hydrogen more efficiently and at a cost level unmatched globally,” he noted.

To secure its place in international markets, NGHC has partnered with Air Products in a landmark 30-year offtake agreement. This collaboration will enable the company to export hydrogen in the form of ammonia, which is more convenient to transport and distribute globally. This strategic move aligns with the growing demand for sustainable fuels in industrial sectors that are looking to transition away from fossil fuel reliance.

The plant, situated within NEOM’s expansive development zone in northwest Saudi Arabia, benefits from consistent solar and wind energy, providing a crucial cost advantage for hydrogen production. This initiative forms a vital part of Saudi Arabia’s broader Vision 2030 strategy, spearheaded by Crown Prince Mohammed bin Salman, which aims to diversify the Kingdom’s economy by investing in renewables, tourism, and advanced technology.

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One of the key pillars of this project is its emphasis on building local expertise. According to Al-Ghamdi, over 60% of NGHC’s workforce is currently composed of Saudi nationals, ranging from seasoned industry veterans to newly graduated engineers. The company is actively collaborating with Saudi universities and launching specialised training programmes to prepare the next generation for the technical challenges of the green energy sector.

“Our mission extends beyond producing hydrogen,” Al-Ghamdi stated. “We are committed to laying the foundation for a skilled workforce in Saudi Arabia, which will be crucial as the country pivots towards a sustainable energy future.” This focus on talent development ensures that the Kingdom not only leads in green energy production but also establishes itself as a knowledge hub in the sector.

Adding to the plant’s innovative approach, NGHC has partnered with Germany’s engineering giant ThyssenKrupp on a 10-year research and development collaboration. This partnership aims to refine electrolyser technology, optimising it for efficiency and durability. The first electrolyser units are set to be installed ahead of the main facility’s launch, providing a testing ground for streamlining operations and minimising maintenance costs.

These early installations are critical as NGHC prepares to scale up to full production. By optimising processes and extending equipment lifespans, the company aims to reduce overall operational costs, making green hydrogen even more commercially viable. This approach is expected to provide valuable insights that could be replicated in other projects worldwide, further positioning Saudi Arabia as a leader in renewable energy.

While the global green hydrogen market has become more competitive, Al-Ghamdi remains confident that the NEOM Saudi Arabia hydrogen project’s unique positioning gives it a substantial advantage. “We have the scale, location, and strategic partnerships to lead this industry,” he remarked. The NEOM project is not just about energy production; it represents a transformative leap for Saudi Arabia’s economy, perfectly aligning with Vision 2030’s ambitious objectives.

As the world races to decarbonise, the NEOM Green Hydrogen project is setting the stage for what could become a template for future green energy projects. With its focus on leveraging local resources, building a skilled workforce, and fostering international partnerships, NGHC is well-positioned to lead the charge in making green hydrogen a cornerstone of sustainable energy.

The world’s attention is now on Saudi Arabia as it prepares to launch the groundbreaking NEOM green hydrogen facility in 2026. With NEOM’s vast resources and forward-thinking strategies, Saudi Arabia could soon become synonymous with green hydrogen innovation, driving global efforts toward a net-zero future.

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