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NEOM Initiates Construction on World Largest Green Hydrogen Facility

NEOM Initiates Construction on World Largest Green Hydrogen Facility

NEOM, the groundbreaking futuristic city in Saudi Arabia, has embarked on a momentous journey towards large-scale production of green hydrogen within its borders. The NEOM Green Hydrogen Company (NGHC) is currently in the process of constructing a revolutionary facility in Oxagon, set to become the world largest commercial-scale production site for green hydrogen.

Once operational by 2026, the facility will initially generate an impressive 600 tonnes of green hydrogen per day, destined for global export. This substantial output is projected to reduce CO2 emissions by up to 5 million tons annually, marking a significant contribution to environmental sustainability.

In a major development, NGHC has successfully reached a financial close, securing SAR 22.9 billion in funding from a consortium of 23 esteemed financial institutions. This diverse group includes the Saudi Industrial Development Fund (SIDF), the National Infrastructure Fund (NIF), as well as prominent local and international banks.

This substantial funding not only represents a pivotal milestone in advancing NGHC global aspirations but also reflects the confidence of partners and financiers in NEOM ability to foster renewable energy solutions and serve as a hub for environmentally conscious investments.

NEOM progress aligns with the vision of Energy Minister HRH Prince Abdulaziz bin Salman, who aims to establish Saudi Arabia as a leading hydrogen exporter on a global scale. Nadhmi Al-Nasr, CEO of NEOM and Chairman of NEOM Green Hydrogen Company, expressed the commitment to address global challenges through the promotion of clean energy solutions like green hydrogen. Alongside partners Air Products and ACWA Power, NEOM is investing in cutting-edge technology and industry innovations that will support the worldwide transition to clean and sustainable energy. This endeavor is expected to generate employment opportunities, attract and nurture local and international talent, and drive economic diversification within the Kingdom.

Oxagon, known as the home of advanced and clean industries in NEOM, was selected as the prime location for NGHC due to its abundant natural resources, strategic coastal position, and proximity to state-of-the-art facilities and future tenants. As the flagship tenant for renewable energy within Oxagon manufacturing ecosystem, NGHC presence offers immediate downstream and upstream localization opportunities. NEOM Hydrogen Innovation and Development Center (HIDC) is already established in Oxagon research and innovation district, aimed at accelerating lab-to-market solutions and business development in hydrogen production, utilization, and transportation.

The construction of the green hydrogen plant is well underway, with NGHC workforce already on-site, marking an important milestone for Oxagon. As electricity generation using fossil fuels remains a significant contributor to global carbon emissions and climate change, NGHC substantial volume of green hydrogen has the potential to directly reduce carbon emissions by up to 5 million tons of CO2 per year. Furthermore, it will indirectly support the decarbonization efforts of various industries and sectors. Experts predict that green hydrogen could constitute 12% of the global energy mix, with the regional green hydrogen industry estimated to be worth up to SAR 750 billion by 2050.

NEOM ambitious pursuit of large-scale green hydrogen production represents a significant step towards a more sustainable and greener future. As construction progresses and the facility takes shape, NEOM continues to showcase its commitment to driving innovation, attracting global talent, and spearheading the transition to a low-carbon economy.

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