Tell me more about the project milestones and progress that you’ve achieved with NEOM Green Hydrogen Company (NGHC).
There's a lot to say about NGHC, but I’ll give you a clear picture of where we stand. NGHC was established to combat climate change and decarbonize the globe. By the end of 2026, when the plant becomes operational, we’ll be converting green hydrogen into 1.2 million tonnes of ammonia, which translates into saving 5 million tonnes of carbon emissions annually. This impact will help sectors that are harder to decarbonize, such as transportation and aviation, switch to more sustainable fuels. To put it into perspective, 20,000 heavy trucks could be powered by hydrogen fuel.
The project is a collaborative effort led by three visionary shareholders: ACWA Power, Air Products and NEOM. Together, they’ve brought their weight of expertise to build a groundbreaking facility in NEOM’s Oxagon . This is a massive project spanning over 300 square kilometers, integrating a wind garden solar farm, and the hydrogen production facility. We’ve been in construction for over a year now, and we’ve seen considerable progress. We achieved financial close in mid-2023, and the work at all three key sites, including the Hydrogen Innovation Development Center, is advancing well.
What is the role of the Hydrogen Innovation Development Center in advancing green hydrogen technologies?
The Hydrogen Innovation Development Center plays a critical role in the future of green hydrogen. One of the major innovations is via our project at HIDC which focuses on the testing of new technologies on a single electrolyser, giving us a testing ground for new technologies and critical data that will inform our operations at the main green hydrogen plant, where we will be deploying 110 of the same electrolysers. By designing the plant for optimal performance, we’re pushing the boundaries of efficiency and sustainability.
Beyond that, the center which is owned by ENOWA and features several independent projects by leading energy producers focuses on advancing hydrogen technology through research and development. We’re exploring a range of innovative solutions, including new process automation and downstream applications like e-fuel and methanol production. The center will serve as a hub for collaboration with technology suppliers, manufacturers, and research institutes to continuously improve our operations. This openness to innovation positions NGHC as a leader in the green hydrogen space, allowing us to test and implement cutting-edge technologies that can further improve the industry.
Can you discuss the importance of collaboration in achieving innovation within NGHC?
Collaboration is essential for innovation in the hydrogen sector, and it’s a team effort. You can’t achieve these breakthroughs alone; it requires cooperation with technology suppliers, manufacturers, producers, and even governments. We rely on educational partnerships with Saudi institutes like KAUST, KACST to help us develop process improvements and automation ideas, as well as working with companies like Baker Hughes to localize the production of key equipment such as hydrogen compressors. Training up a workforce in Saudi Arabia is just as important, so we have partnered with EWA to deliver the first green hydrogen training programme in the Kingdom, equipping Saudi nationals with the skills and experience needed to support the operation, maintenance, and optimisation of the green hydrogen plant.
These partnerships extend to our shareholders, ACWA Power, Air Products and NEOM, who bring invaluable expertise. Together, they form a robust foundation that helps NGHC push the boundaries of green hydrogen. It’s through these collective efforts that we can achieve large-scale hydrogen production and continuously improve our technology.
Can you elaborate on the 30-year offtake agreement for green ammonia?
Certainly. The 30-year offtake agreement is one of our most significant achievements. Air Products will be the exclusive off-taker for the green ammonia we produce, giving us strong confidence in the market for hydrogen. This long-term agreement underpins our financial and operational stability, ensuring a reliable demand for the product as we ramp up production.
This agreement is also vital for innovation. Having a secure buyer allows us to focus on improving efficiency and scaling up operations. Our partnership with our shareholders enables us to tap into their strengths—whether it’s ACWA Power’s renewable energy expertise or Air Products’ leadership in industrial gasses. Together, we’re creating a vertically integrated supply chain that supports the global transition to clean energy.
What are the environmental and economic impacts of the project?
The environmental benefits of this project are substantial. Our green hydrogen could result in a 5 million tonne reduction in carbon dioxide emissions annually. The way this works is simple: we’re replacing fossil fuels with green hydrogen, which leads to significant carbon savings. When used as fuel for heavy trucks, green hydrogen eliminates the emissions that would otherwise come from conventional fossil fuels.
The broader economic impact also comes from its applications: hydrogen will be used in sectors such as heavy transportation, aviation, and even smaller applications like airports and residential areas, contributing to both economic growth and environmental sustainability.
How do you foresee scaling the project in the future?
Scaling this project is a critical part of our long-term vision. Right now, we’re building at an unprecedented scale, and our focus is on getting the plant operational by the end of 2026. Once we’ve achieved this, the next step is to stabilize and optimize the operation. From there, we’ll identify the bottlenecks and further refine the technology, allowing us to increase efficiency and potentially expand production capacity.
Beyond 2026, the technology will evolve and we’ll continue to grow and lead the market in green hydrogen production. Scaling will also depend on global demand, technological advancements, and regulatory support, but we’re confident that NGHC will play a pivotal role in meeting the world’s future energy needs.
What challenges do you foresee in the global adoption of green hydrogen, and how are you positioning NGHC to address them?
One of the key challenges is the development of a global ecosystem to support green hydrogen. It’s not just about us producing hydrogen; the entire supply chain—from technology providers to government regulators—needs to be aligned. We’re at the starting point, producing hydrogen at scale, but other industries must follow by investing in the necessary infrastructure and technologies.
This is a typical challenge for any emerging industry. It requires investments in R&D, clear government policies, and a commitment from other sectors to adopt hydrogen-based solutions. We’re addressing these challenges by working closely with all stakeholders and ensuring that the technology we develop is scalable and adaptable to a wide range of industries.
What are your thoughts on the future infrastructure needed to support widespread hydrogen use?
The infrastructure for hydrogen use is indeed a critical area. While building the necessary infrastructure—like hydrogen fueling stations—is not overly capital-intensive, it does require regulatory clarity and a supportive ecosystem. Once the regulations are in place and the supply chain is established, we anticipate that the build-out of infrastructure will progress quickly.
As hydrogen technology becomes more widespread, we expect to see fueling stations for both cars and trucks, similar to what we have today with gasoline stations. The key is ensuring that all the pieces, from production to distribution, are in place to make hydrogen accessible on a global scale. Collaboration with governments and industry players will be crucial in this next phase.
What is NGHC’s long-term vision for the global hydrogen market?
Our long-term vision is to lead the global hydrogen market. Over the coming years, we aim to focus on innovation, continuously improving our technology and exploring new applications for green hydrogen.
Beyond 2026, we’ll focus on optimizing operations and scaling up production. We’re also committed to developing young talent and creating a dynamic, diverse workforce at NGHC, giving young Saudis a route into a growing industry of the future. With the support of our shareholders and partners, we’re confident that NGHC will play a leading role in the global transition to a hydrogen-based economy.
