The Neom hydrogen project, part of a $500 billion industrial and tourism development on Saudi Arabia’s Red Sea coast, will begin producing transportation fuel next year, according to the head of the company.
By mid-2024, Neom will be making hydrogen for vehicles such as buses and trucks, said Dave Edmondson, CEO of Neom Green Hydrogen Co., in Dubai. A larger, export-focused plant is also being developed.
NGHC, a venture between local company ACWA Power, state-backed Neom and US-based Air Products & Chemicals Inc., is part of Riyadh’s ambitious plans to expand into cleantech industries while prepares for a future beyond fossil fuels. Green hydrogen is still much more expensive than oil and natural gas, but developers are confident they can lower costs enough to make it competitive.
The largest plant, an $8.5 billion project designed to produce 600 tons of hydrogen a day using wind and solar power, will begin exporting fuel in the form of ammonia in 2026.
A third hydrogen facility, potentially operational in 2028 or 2029, would likely aim to supply energy to local industry, according to Edmondson.
“We look forward to additional investments in Neom,” he said. The efficiencies learned will help reduce the costs of future installations, while efforts by governments and companies to reduce emissions will lead to a “huge increase” in demand, he said.
