Expected to commence operations in 2026, the green hydrogen facility will be a cornerstone of Saudi Arabia's plans to diversify its economy and reduce its reliance on fossil fuels. The project, which is being developed by a consortium led by Air Products, combines solar and wind power to produce hydrogen at scale, which can then be exported for use in industries ranging from transportation to energy production across key international markets such as Japan and Europe.
The significance of green hydrogen lies in its potential to decarbonize several hard-to-abate sectors, including steel manufacturing, cement production, and chemical processing. As countries around the world push for cleaner energy sources, hydrogen is seen as a versatile fuel that can replace conventional fossil fuels while helping industries reduce their carbon footprints.
NEOM's location offers a unique advantage in the global push for green energy. The region enjoys optimal conditions for renewable energy generation, with both sunlight and wind providing a consistent, reliable source of power. This makes it one of the few places on Earth where green hydrogen can be produced economically at such large volumes. Once operational, the plant will not only serve the Kingdom’s domestic energy needs but also be a critical player in the international energy market.
Saudi officials view this project as a crucial step toward achieving the country's goal of becoming a major player in the green energy sector. The plant is expected to significantly contribute to job creation, technology innovation, and long-term economic growth in the region. Furthermore, it aligns with Saudi Arabia’s broader efforts to position itself as a leader in the global energy transition, complementing its existing oil industry with a new, sustainable energy source.
The NEOM hydrogen project is also part of a broader strategic vision for the area, which is being developed as a futuristic, tech-driven urban hub. The city will be powered entirely by renewable energy, and green hydrogen is expected to play a central role in its energy infrastructure.