The NEOM Green Hydrogen Company plant at Oxagon is one of the largest green hydrogen production facilities under construction in the world. A joint venture between NEOM, Air Products, and ACWA Power, the plant is designed to convert renewable electricity into green hydrogen and ammonia for use within NEOM and for export to global markets.
What is green hydrogen
Green hydrogen is hydrogen produced by splitting water (H2O) into hydrogen and oxygen using electricity from renewable sources, in a process called electrolysis. Because the only inputs are water and renewable electricity, the production process emits no carbon. This contrasts with grey hydrogen, made from natural gas, and blue hydrogen, made from natural gas with carbon capture.
Green hydrogen is seen as a key fuel for sectors where direct electrification is difficult, including heavy industry, shipping, aviation, and long-distance trucking.
At a glance
- Location: Oxagon, NEOM region, Saudi Arabia.
- Partners: NEOM, Air Products, ACWA Power.
- Capacity: design output of approximately 600 tonnes per day of green hydrogen, equivalent to roughly 1.2 million tonnes per year of green ammonia.
- Inputs: roughly 4 GW of dedicated solar and wind generation, with battery and other storage.
- Off-take: Air Products is the exclusive off-taker of the ammonia for global distribution.
How the plant works
The plant operates in three integrated stages.
- Renewable generation. A dedicated 4 GW solar and wind array generates electricity for the plant. The location of NEOM, with strong solar irradiation and consistent winds, supports both technologies.
- Electrolysis. The electricity powers an electrolyser array that splits water into hydrogen and oxygen. The plant uses some of the largest electrolyser deployments yet seen.
- Ammonia synthesis. Hydrogen is combined with nitrogen from the air to produce green ammonia, a more easily transportable form. Ammonia is the form that is shipped to international markets.
At destination, the ammonia can be used directly as a fuel or feedstock, or it can be cracked back into hydrogen and nitrogen.
The partnership
The NEOM Green Hydrogen Company is a 50-50-50 joint venture, with three equal partners.
- NEOM contributes land, integration with the broader NEOM region, and access to renewable resource sites.
- ACWA Power is one of the world’s largest independent power producers, with extensive experience in Gulf renewable energy and water projects.
- Air Products is a major industrial gases company and the exclusive off-taker for the ammonia, with a global distribution network for delivery to industrial customers.
The structure pairs NEOM’s land and energy resources with ACWA’s project execution expertise and Air Products’ market access.
Construction status
The plant has been in physical construction since the early 2020s, with the dedicated solar and wind generation, the electrolyser bank, and the ammonia synthesis facility all under build. The project is delivered in phases, with first hydrogen production targeted in the late 2020s. Full output capacity ramps up over the years that follow.
Why this matters
The NEOM Green Hydrogen Company plant is significant for several reasons.
- Scale. When at full output, it will be among the largest green hydrogen facilities in the world.
- Cost curve. The project tests whether green hydrogen can be produced at a cost competitive with grey hydrogen, a critical question for the global energy transition.
- Saudi positioning. The plant positions Saudi Arabia as a producer of green energy molecules for export, alongside its traditional role as an oil producer.
- NEOM economics. Green hydrogen contributes a productive economic base to NEOM beyond tourism and real estate.
Customers and end use
Air Products has signed off-take agreements with industrial customers in Europe, Asia, and North America. End uses include:
- Industrial feedstock for chemicals and fertilizer production.
- Shipping fuel as ammonia is increasingly considered for maritime decarbonisation.
- Aviation fuel as a precursor for synthetic aviation fuel.
- Power generation as a peaker fuel where natural gas is being phased out.
How this fits into NEOM
The Green Hydrogen Company plant is the anchor industrial tenant at Oxagon and the most visible NEOM industrial asset. Its operations contribute revenue, jobs, and a global industrial profile to NEOM. The plant also supports NEOM’s claim of operating on renewable energy by providing the on-site hydrogen for use in industrial processes and back-up power.
Related reading
For Oxagon as a whole, see Oxagon: NEOM’s industrial city. For the wider NEOM region, see the main NEOM overview. For NEOM sustainability strategy, see the NEOM sustainability and renewable energy guide.
Sources
This article draws on NEOM Green Hydrogen Company publications, Air Products and ACWA Power disclosures, NEOM Company announcements, the Saudi Vision 2030 documentation, and reporting from Bloomberg, the Wall Street Journal, the Financial Times, Reuters, and trade press in energy and chemicals. Corrections welcome.