NEOM’s 2.2GW Green Hydrogen Project Hits 80% Completion, Poised to Redefine Clean Ammonia Production

Saudi Arabia’s Bold Green Hydrogen Project Hits 80% Completion

The NEOM Green Hydrogen Company (NGHC) — a powerhouse trio formed by ACWA Power, Air Products, and NEOM — just announced that its massive 2.2GW green hydrogen and ammonia production facility is almost there, sitting at a solid 80% completion. This $8.4 billion mega-project, set in Oxagon — NEOM’s futuristic industrial zone in northwest Saudi Arabia — is gunning for daily output of 600 tonnes of carbon-free hydrogen by 2027. If all goes to plan, it’ll be the largest facility of its kind anywhere in the world.

Big Numbers Behind the Project

• 4 GW of wind and solar energy coming online by mid-2026.
• Targeting 600 tonnes of hydrogen per day, which will be converted into green ammonia for easier transport and global shipping.
• Expected to cut 5 million metric tonnes of CO₂ emissions every year.
• Air Products holds a one-third stake and is currently the project’s only committed buyer.
• Backed financially by 23 global and regional banks — serious heavy hitters.

Why This Matters: Strategic Bets on a Sustainable Future

This isn’t just a splashy investment — it’s a cornerstone of Saudi Arabia’s Vision 2030, the nation’s high-stakes play to move beyond oil. With this green hydrogen facility, it’s betting big on clean energy and setting itself up as a global leader in hydrogen production. Each player in this three-way partnership is doing what it does best: ACWA Power brings the energy expertise, NEOM lays the futuristic groundwork, and Air Products guarantees an international buyer and export pipeline.

But it’s not all smooth sailing. While Air Products is locked in as the main offtaker, the project still hasn’t lined up a wave of additional buyers. That raises some questions around the current global appetite for sustainable energy — especially when it comes to hydrogen — and how competitive it can really be, cost-wise, on the global market. There’s talk that the team might shift focus to domestic use if export demand doesn’t pick up, but so far, the local demand picture remains a bit blurry.

The Bigger Picture: A Litmus Test for Hydrogen at Scale

This isn’t just about one plant. This is the proving ground for whether or not large-scale green hydrogen production can actually work commercially — and pave the way for other countries to follow suit. If the project is successful, it could become the go-to model for future ventures that mix fuel cell technology, electrolysis, renewable energy, and ammonia production into a scalable, export-ready solution.

But if it stumbles, it could chill investor confidence across the board and slow down the pace of global decarbonization — just as the world is finally gaining some momentum in tackling climate change.

What’s Next?

With the finish line in sight — and most of the hard construction already done — the NEOM Green Hydrogen Project is now in a race to prove that exporting clean hydrogen at this scale actually works. The gear is in place, but now comes the harder part: winning over the market. As global demand for zero-emission energy ramps up, the success (or failure) of this ambitious plant could have ripple effects far beyond the Saudi horizon.