In the race towards net-zero, hydrogen projects are appearing on every continent from Australia’s windswept coasts to Europe’s industrial heartlands.

Amongst them, the NEOM Green Hydrogen Company (NGHC) in northwest Saudi Arabia (KSA) stands apart, combining the region’s abundant natural resources, cutting-edge technology and long-term supply arrangements to produce low-cost green hydrogen on a massive scale.

From the end of 2026, the $8.4B project – a joint venture owned equally by ACWA Power (a Saudi listed power generation developer and investor), Air Products (global supplier of industrial gases) and NEOM (PIF-backed developer of the futuristic megacity) – will be the world’s largest utility scale, commercially-based hydrogen facility powered entirely by renewable energy.

The project is an end-to-end process facility, covering all technologies in the value chain from renewable power generation and desalination, to the production via electrolysis of up to 219,000 tonnes of carbon-free hydrogen annually. This equivalent to 600 tonnes a day, enough to power 20,000 hydrogen-fuelled buses. For ease of transport, and to avoid the costs of compression or liquefaction, the hydrogen will be converted into some 1.2 million metric tonnes of green ammonia each year by combining it with nitrogen separated from the air in another part of the facility.

The first of its kind

The project has several competitive advantages. Among these is scale, enabled by the availability of large portions of land secured by the Saudi authorities, and access to significant project finance and strategic equity capital.

This is complemented by the project’s location, which sits in a rare natural corridor where two powerful forces converge: high year-round solar exposure and steady coastal winds, meaning clean, reliable and low-cost power, and stable operations. Many green hydrogen plants abroad must choose between relying mainly on sunshine or wind, often compromising efficiency.

From a technology standpoint, NGHC is going all-in on green from day one. Whilst other projects start with hybrid systems with fossil fuel backup, NGHC’s operation will exclusively harness the power of 5.5 million solar panels and more than 250 wind turbines on-site – some 4 GW of renewable generation – supported by significant battery storage. This avoids transitional emissions and gives the project instant credibility with buyers and regulators who demand proof of clean supply chains.

In addition, KSA’s location at the crossroads of major global shipping routes offers a trade advantage that can’t be ignored. NGHC is part of a purpose-built city designed with green logistics and smart infrastructure, and NGHC will have access to a dedicated jetty for export in the Red Sea. This means shipments will be able to reach Europe, Asia, and Africa faster and cheaper than many competitors, a major plus for buyers seeking both energy security and a quick turnaround. Conversely, many hydrogen projects retrofit existing industrial zones or compete for port space, creating bottlenecks.

Due to the project’s scale and favourable power and water availability, it is expected that green hydrogen could be produced at costs lower than $3/kg and green ammonia at approximately $700/kg, which is highly competitive.

De-risking mechanisms

A defining characteristic of the project is the economic and interest alignment between its stakeholders, with the equity providers bearing significant project risks.

Offtake risk is a key risk in many capital-intensive infrastructure projects. NGHC’s main product, green ammonia, will be commercialised through an exclusive 30-year offtake agreement with Air Products, which will be aimed at export markets, mainly in Europe.

This long-term off-take arrangement also facilitated the securing of favourable project financing terms. The project’s total investment of $8.4B is funded by $2.3B of cash contributions and shareholder loans from the sponsors and $6.1B of non-recourse debt financing ($5.8B senior and the remainder mezzanine) from 23 local, regional and international banks and financial institutions.

This includes $2.75B – more than 40% of this – from the Saudi government, comprising $1.5B from the National Infrastructure Fund and $1.25B in Saudi riyal-denominated financing from the Saudi Industrial Development Fund, in addition to its equity investment via NEOM.

In addition, the non-recourse financing has been certified by S&P Global as one of the largest project financings arranged under green financing principles.

Another positive aspect of the project is the technology integration. The various elements are provided by industry leaders such as Thyssenkrupp (electrolysis), Topsoe (green ammonia) and Baker Hughes (hydrogen compression), and Air Products is a technology provider (air separation) and the nominated contractor and system integrator for the entire facility. This contract is valued at $6.7B.

Moreover, NGHC will integrate with ENOWA, NEOM’s utility subsidiary, to ensure that brine, the waste product from desalinating seawater for use in the electrolysis process, is converted into industrial materials (e.g. salts) that can be used locally or exported. This process aims for zero brine discharge and aligns with NEOM’s commitment to a circular economy.

All-in on green

NGHC demonstrates the feasibility and economic viability of large-scale green hydrogen production in Saudi Arabia. The joint venture showcases KSA’s ability to form groundbreaking public-private partnerships and the results of an impressive range of progressive legal reforms that offer clarity and reassurance to investors and market entrants that it is open for business and committed to the growth agenda. In addition, by leveraging KSA’s renewable energy potential, the project aligns with domestic and global sustainability goals and sets a precedent for future green hydrogen projects.

Part of ACWA Power’s long-term strategy, for example, is to use NGHC as a blueprint. It is already planning a second green hydrogen hub in Yanbu, another port city on Saudi Arabia’s Red Sea coastline, that would be twice the size of NGHC and operational by 2030.

As one of the largest green hydrogen suppliers at scale by the end of 2026, NGHC will benefit from an early-mover advantage and be able to supply increasing demand from the industry and transport sectors for clean inputs and fuels.

Whilst the technical scale of the project is impressive, what truly sets NGHC apart is its potential to impact industries that have been traditionally difficult to decarbonise. The shipping industry, for example, is one of the largest contributors to global carbon emissions and remains heavily reliant on fossil fuels. Similarly, industries such as steel manufacturing and fertiliser production are essential but are also responsible for substantial emissions. The wider availability of cost-effective green hydrogen and ammonia as inputs and future fuels will minimise the “green premium” and assist greatly with decarbonising these hard-to-abate sectors, and NGHC is at the forefront of this revolution.

According to Wesam Alghamdi, NGHC’s CEO: "Our project is more than a plant, it is a global blueprint for scalable, green hydrogen. We have reached more than 80% completion across all sites and continue to deliver and install milestone equipment safely. Our team is executing with precision and pace, turning first-mover ambition into operational reality. These efforts are driving green hydrogen forward as a clean alternative to meet the world’s energy needs."

Yako Wijnands, Vice-President – Operations at NGHC, describes the behind-the-scenes work as a process of "integrating cutting-edge technology, Saudi ambition, and building a world-class team, setting the stage to deliver the world's largest green hydrogen plant and redefine operational excellence."

By replacing fossil-fuel-derived hydrogen and other conventional fuels, NGHC is expected to cut up to 5 million tonnes of CO₂ emissions every year – equivalent to taking more than one million cars off the road. This is a scale of impact that few hydrogen projects, many still in pilot phases, can match.

Accelerating Vision 2030

The reduction in carbon emissions is a significant step toward Saudi Arabia’s goal of achieving net-zero emissions by 2060, a target outlined in the Saudi Green Initiative. KSA is seeking to position itself as a global renewable energy powerhouse, and NGHC is a critical milestone whose impact will extend far beyond Saudi Arabia’s borders.

Equally important is how well NGHC fits into the bigger picture. The project is a sign of, and a catalyst for, national alignment, and will both directly and indirectly through future projects it inspires stimulate job creation, workforce upskilling, technology transfer and the growth of local supply chains and businesses.

At present, the project has already created over 300 direct jobs, and by 2050 up to one million jobs could be created across KSA’s renewable energy and infrastructure ecosystem, with the NEOM region set to benefit significantly. In addition, NGHC is collaborating with Saudi research, education and training institutions to upskill Saudi youth and prepare them for careers in the green hydrogen and renewable energy sectors.

NGHC is also playing a key role in empowering Saudi women. Currently, women make up 14% of the workforce at NGHC, and 27% of those in technical training programs are female. This is a significant step forward in a country where women’s participation in the workforce has historically been limited. NGHC’s commitment to gender equality is demonstrated through its active recruitment of women for leadership and technical roles, helping to pave the way for a more inclusive and diverse workforce in Saudi Arabia’s rapidly evolving energy sector.

According to Ashkan Abdulghani, NGHC’s HR Director: "We’re investing in the next generation of Saudi talent, equipping them with the skills to shape the future of clean energy. By combining local potential with global know-how, we’re building the workforce that will enable industrial decarbonisation at scale."

In addition, NGHC will spur the development of new industries and businesses, including those focused on renewable energy technology, research and development, and local manufacturing. The ripple effect of NGHC’s success will create a thriving local economy and a robust and enduring green energy sector in the region.

The location for this revolutionary facility – NEOM, a future-oriented city – could not be more fitting. Saudi Arabia’s Vision 2030 seeks to diversify its economy and reduce its dependence on oil, and NEOM stands as the physical manifestation of this: a city powered by renewable energy, a hub of innovation, and a place where the world’s greatest ideas are brought to life. NGHC’s presence in NEOM is more than symbolic: it represents KSA’s commitment to leading the global green energy revolution.

If the global hydrogen industry is still writing the opening chapters of its story, NGHC is already shaping the plot. This isn’t just another entry in the green hydrogen race – it’s a benchmark for what the sector can achieve when natural advantages, strategic vision, and industrial ambition align.

We look forward to keeping you updated.

Images used with the support of NEOM Green Hydrogen Company and Air Products.