Latest news with #NGHC
Yahoo
13-06-2025
- Business
- Yahoo
Saudi Arabia's Giant Hydrogen Project Reaches 80% Completion
Saudi Arabia's flagship NEOM Green Hydrogen Project has crossed a major milestone, with 80% of its construction work now complete across multiple sites, according to project partner Air Products (NYSE:APD). The sprawling project includes a large-scale green hydrogen production facility, solar and wind power farms, and an integrated transmission grid. The entire complex is expected to begin operations within two years, positioning it as the largest renewable-powered ammonia production facility globally. Air Products confirmed that the 4 GW of combined solar and wind generation capacity remains on track for completion by mid-2026, with the first shipments of ammonia-based green hydrogen projected to start in 2027. Situated in NEOM, the futuristic megacity under development in Saudi Arabia, the green hydrogen venture is jointly owned by ACWA Power, Air Products, and NEOM itself. Once fully operational, the facility aims to produce up to 600 metric tonnes of green hydrogen daily, converted into ammonia for easier transport and export—a key solution for industrial and transportation decarbonization worldwide. According to the NEOM Green Hydrogen Company (NGHC), the project is aligned with Saudi Arabia's Vision 2030 and its Saudi Green Initiative. NGHC estimates that its production could offset approximately 5 million metric tonnes of CO? annually, roughly equivalent to removing 210,000 vehicles from the road. Hydrogen Headwinds, Saudi Tailwinds Saudi Arabia's steady progress comes as many green hydrogen projects elsewhere face significant headwinds. Globally, offtake agreements, a critical component for project financing, remain scarce. BloombergNEF estimates that only about 12% of green hydrogen plants worldwide have secured firm customer purchase commitments. High upfront costs and the need for expensive industrial retrofits deter many potential buyers. Compounding this, green hydrogen remains up to four times more expensive than hydrogen produced from natural gas (gray hydrogen).Nevertheless, NGHC has made notable progress on this front. In March 2025, Saudi utility ACWA Power signed a memorandum of understanding with Germany's SEFE (formerly Gazprom Germania) to supply up to 200,000 tonnes of green hydrogen annually by 2030. While not yet a binding sales contract, the agreement signals strong interest from European buyers and contributes to ongoing efforts to establish a "hydrogen bridge" between Saudi Arabia and Europe. As a result, NGHC has tentative demand commitments for a significant portion of its projected production capacity. Saudi Arabia's Dual Strategy: Green Energy and Oil Expansion While Saudi Arabia is ramping up investments in renewable energy and hydrogen, it continues to maintain its dominant position in oil and gas. Last year, Saudi Aramco announced dozens of new research and development projects at its Dhahran headquarters aimed at reducing emissions while continuing to produce roughly 9 million barrels of crude oil daily. Aramco projects that these technology advancements could lower its emissions by 15% by 2035, equivalent to 51.1 million metric tonnes of CO? annually. 'Our strategy is not about replacing one source with another, but rather about improving the efficiency and sustainability of all forms of energy to meet growing global demand,' said Ahmad Al-Khowaiter, Aramco's executive vice president for technology and innovation. Part of this strategy includes major investments in carbon capture and storage (CCS). At its Hawiyah gas processing facility, Aramco is capturing carbon dioxide for enhanced oil recovery, injecting it into underground reservoirs located 50 miles away. The company aims to reduce the cost of carbon capture by 50% to ensure commercial viability and has set a target to store around 9 million tonnes of CO? annually at its Jubail facility starting in 2028. In parallel, Aramco has expanded its hydrogen portfolio, acquiring a 50% stake in Blue Hydrogen Industrial Gases Company (BHIG), a subsidiary of Air Products Qudra—a joint venture between Air Products and Qudra Energy of Saudi Arabia. Diversifying Beyond Energy: Mining Sector Expansion In addition to energy diversification, Saudi Arabia is accelerating the development of its mining sector, aiming to increase its contribution to GDP from $17 billion to $75 billion by 2035. Recent initiatives include partnerships with international mining companies such as Barrick Gold, Ma'aden, Zijin Group of China, and India's Vedanta. In December 2024, the Kingdom finalized nine investment deals worth over 35 billion riyals ($9.3 billion) under its Global Supply Chain Resilience Initiative, targeting critical minerals needed for battery technologies and global supply chains. 'These agreements strengthen Saudi Arabia's position as a key supplier of critical materials while building domestic manufacturing capacity and promoting sustainability,' said Khalid Al-Falih, Saudi Minister of Investment. By Alex Kimani for More Top Reads From this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
04-06-2025
- Business
- Miami Herald
Images Show Power Plant Nears Completion at World's Biggest Construction Site
Images shared by Neom's Green Hydrogen Company (NGHC) show the world's largest green hydrogen plant nearing completion in Saudi Arabia and the company said it was now 80 percent complete. Newsweek has sought comment from Neom, the world's biggest construction project. Neom's plant is designed to support Saudi Arabia's Vision 2030 ambition to drive economic diversification away from oil and gas and with a view to taking leadership in renewal energy. It is part of the overall Neom project, which is a centerpiece of Crown Prince Mohammed bin Salman's plans for Saudi Arabia. Some of Neom's projects have experienced delays and budget overruns, with a newly appointed leader now tasked with steering the initiative back on course. The completion of the green hydrogen plant would be a significant milestone. "Construction has now reached 80% completion across all our sites: the green hydrogen facility, wind garden, solar farm, and transmission grid," NGHC announced on its social media accounts. Covering an area of over 300 square kilometers (about 116 square miles), the plant aims at producing up to 600 tonnes of carbon-free hydrogen per day. The company said major equipment including wind turbines, electrolysers and hydrogen storage vessels are currently being installed. Hydrogen can be used as a carbon-free alternative to fossil fuels. Green hydrogen is a form that has been produced using renewable energy to split it from the oxygen in water. Most hydrogen is currently produced using fossil fuels. Back in 2023, Neom said its plant was expected to be fully operational by 2026, with all of the green hydrogen produced to be globally exported as green ammonia although Bloomberg recently reported that it has struggled to find international buyers for its fuel. The estimated $8.4 billion project is a joint venture between Neom, U.S.-based industrial gases company Air Products, and ACWA Power, a Saudi renewable energy firm backed by the country's sovereign wealth fund. Despite its message on the environment, Neom's projects have faced criticism given that the massive city is being built in the desert and is set to include artificial lakes, a ski resort and industrial zones. NHGC on LinkedIn: "We are building the world's largest green hydrogen plant at Oxagon in NEOM— and we're on track to deliver." Roxana Shafiee, a postdoctoral fellow at the Harvard University Center for the Environment, as quoted by the Harvard Gazette in 2024: "Even if production costs decrease in line with predictions, storage and distribution costs will prevent hydrogen being cost-competitive in many sectors. Our results challenge a growing idea that hydrogen will be the 'Swiss army knife of decarbonization' and suggest that the opportunities for hydrogen may be narrower than previously thought." The company said 4 GW of solar and wind power generation is scheduled for completion by mid-2026 while the first ammonia product is expected to become available in 2027. Related Articles New Progress Report From World's Biggest Construction ProjectWill Saudi Arabia's Alcohol Ban be Lifted? Reports Prompt Flare-UpNew Boss Named for World's Biggest Construction ProjectSatellite Images Show Desert Ski Resort at World's Biggest Construction Site 2025 NEWSWEEK DIGITAL LLC.
Newsweek
04-06-2025
- Business
- Newsweek
Images Show Power Plant Nears Completion at World's Biggest Construction Site
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Images shared by Neom's Green Hydrogen Company (NGHC) show the world's largest green hydrogen plant nearing completion in Saudi Arabia and the company said it was now 80 percent complete. Newsweek has sought comment from Neom, the world's biggest construction project. Why It Matters Neom's plant is designed to support Saudi Arabia's Vision 2030 ambition to drive economic diversification away from oil and gas and with a view to taking leadership in renewal energy. It is part of the overall Neom project, which is a centerpiece of Crown Prince Mohammed bin Salman's plans for Saudi Arabia. Some of Neom's projects have experienced delays and budget overruns, with a newly appointed leader now tasked with steering the initiative back on course. The completion of the green hydrogen plant would be a significant milestone. Drag slider compare photos What To Know "Construction has now reached 80% completion across all our sites: the green hydrogen facility, wind garden, solar farm, and transmission grid," NGHC announced on its social media accounts. We are building the world's largest green hydrogen plant at @NEOMOxagon in NEOM— and we're on track to deliver. Construction has now reached 80% completion across all our sites: the green hydrogen facility, wind garden, solar farm, and transmission grid. Milestone equipment,… — NEOM Green Hydrogen Company (@NGHC_) June 2, 2025 Covering an area of over 300 square kilometers (about 116 square miles), the plant aims at producing up to 600 tonnes of carbon-free hydrogen per day. The company said major equipment including wind turbines, electrolysers and hydrogen storage vessels are currently being installed. Hydrogen can be used as a carbon-free alternative to fossil fuels. Green hydrogen is a form that has been produced using renewable energy to split it from the oxygen in water. Most hydrogen is currently produced using fossil fuels. Back in 2023, Neom said its plant was expected to be fully operational by 2026, with all of the green hydrogen produced to be globally exported as green ammonia although Bloomberg recently reported that it has struggled to find international buyers for its fuel. The estimated $8.4 billion project is a joint venture between Neom, U.S.-based industrial gases company Air Products, and ACWA Power, a Saudi renewable energy firm backed by the country's sovereign wealth fund. Despite its message on the environment, Neom's projects have faced criticism given that the massive city is being built in the desert and is set to include artificial lakes, a ski resort and industrial zones. What People Are Saying NHGC on LinkedIn: "We are building the world's largest green hydrogen plant at Oxagon in NEOM— and we're on track to deliver." Roxana Shafiee, a postdoctoral fellow at the Harvard University Center for the Environment, as quoted by the Harvard Gazette in 2024: "Even if production costs decrease in line with predictions, storage and distribution costs will prevent hydrogen being cost-competitive in many sectors. Our results challenge a growing idea that hydrogen will be the 'Swiss army knife of decarbonization' and suggest that the opportunities for hydrogen may be narrower than previously thought." What Happens Next The company said 4 GW of solar and wind power generation is scheduled for completion by mid-2026 while the first ammonia product is expected to become available in 2027.
Zawya
04-06-2025
- Business
- Zawya
NEOM green hydrogen project work on schedule; first ammonia production in 2027
The mega NEOM's green hydrogen project remains firmly on schedule, with 4 gigawatts (GW) of solar and wind power generation set for completion by mid-2026. This will be followed by the commissioning of the electrolysers, with the first ammonia production in 2027, NEOM Green Hydrogen Company (NGHC) said in a construction update on its website. The company said 80 percent of the construction work has been completed across all sites, including the green hydrogen facility, wind garden, solar farm, and transmission grid. 'Milestone equipment is now being received and installed, including wind turbines, hydrogen storage vessels, electrolysers, the cold box, and pipe rack,' the update said. An equal joint venture between ACWA Power, Air Products, and NEOM, NGHC's world-scale plant will integrate up to 4 GW of solar and wind energy to produce up to 600 tonnes per day of carbon-free hydrogen by the end of 2026 in the form of green ammonia. The company has a 30-year off-take agreement with Air Products for all the green ammonia produced at the facility. In May 2023, NGHC achieved a financial close of $8.4 billion, supported by a $6.1 billion non-recourse loan from 23 local, regional, and international banks and financial institutions. (Editing by Anoop Menon) (
Leaders
04-06-2025
- Business
- Leaders
NEOM's Green Hydrogen Plant Nears Completion
NEOM Green Hydrogen Company (NGHC) has reached a significant milestone in its green hydrogen project at Oxagon, Saudi Arabia. This joint venture includes Saudi utility giant ACWA Power, U.S.-based Air Products, and NEOM, the developer of Saudi Arabia's ambitious smart city project. The construction has now completed 80% across all key project areas, including the hydrogen production plant, wind garden, solar farm, and transmission infrastructure. Once fully operational by the end of 2026, NGHC plans to operate the world's largest green hydrogen plant. This facility will produce up to 600 tonnes of carbon-free hydrogen daily, significantly contributing to reducing global carbon emissions. Additionally, this project supports the Kingdom's Vision 2030 ambitions, driving economic diversification and establishing global leadership in clean energy. Installation of Vital Equipment Underway The NGHC stated that installation of vital equipment is currently underway. This includes wind turbines, hydrogen storage vessels, electrolysers, cold boxes, and pipe racks—critical components needed to bring the plant into operation. The project is powered by a combination of solar and wind energy, with 4 GW of clean energy capacity targeted for completion by mid-2026. The first shipments of green ammonia—a transportable derivative of hydrogen—are projected to begin in 2027. Supporting Saudi Arabia's Vision 2030 This pioneering project directly supports the Kingdom's Vision 2030 ambitions to drive economic diversification and global leadership in clean energy. By producing up to 600 tonnes of carbon-free hydrogen daily, the facility will significantly contribute to reducing global carbon emissions. The NEOM Green Hydrogen Plant stands as a testament to Saudi Arabia's commitment to sustainable development and its role in the global transition to clean energy. Short link : Post Views: 12
