meed-logo

line1 line2 line3
SIGN IN / REGISTER

Neom Green Hydrogen mulls next phase

23 November 2023

 

Neom Green Hydrogen Company (NGHC) received the first set of wind turbines for one of the two renewable energy plants that will power its integrated green hydrogen and ammonia production facility in early October.

The initial panels for the project’s solar power plant and hydrogen storage tanks are expected to arrive soon. The first air separation units, meanwhile, will be delivered in the first quarter of 2024.

“We are on track to meet our 2026 target commercial operation date, with the first ammonia production expected sometime between mid to late summer of 2026,” David Edmondson, CEO of NGHC (pictured), tells MEED.

Announced in the summer of 2020, the region’s first, and probably the world’s largest, green hydrogen and ammonia production facility reached financial close in May this year. The project required a final investment of $8.4bn.

“The decision to develop the project was made in 2019 in the strong belief that there would be a market for green hydrogen,” explains Edmondson.

“Having Air Products was certainly a major factor in that decision because of their hydrogen knowledge and experience. They already have an existing infrastructure for the production and distribution of hydrogen, including for mobility.”  

The US-headquartered industrial gases firm, Saudi utility developer and investor Acwa Power and Public Investment Fund-backed Neom equally own NGHC.

The scale of the integrated project is unprecedented. It will require over 4GW of wind and solar power and 400MW of battery energy storage systems. A 190-kilometre electricity transmission grid will link these to a 2GW electrolysis plant in Neom’s Oxagon industrial city.

The plant will produce up to 600 tonnes of hydrogen daily, which will be converted into roughly 1.2 million tonnes of ammonia a year. Air Products will ship the ammonia to Europe to be cracked back to hydrogen for mobility applications.

Despite some pushback on the business model's efficiency and the feasibility of green hydrogen applications in transport and mobility, Edmondson assures MEED that years of due diligence and compliance with EU carbon intensity policies support the business case. Twenty-three banks are financing the project, he points out.

“The NGHC plant is designed to ensure that the carbon intensity of the end product will be beneath the required threshold in Europe,” he says.

Edmondson acknowledges the premium costs currently involved in a low-carbon-intensity supply chain. However, this is expected to change as companies implement their net-zero commitments and suppliers scale their production to meet rising demand.

Air Products’ key role

In addition to being the exclusive offtaker for over 30 years for the green ammonia produced at the plant, Air Products is also the project’s main engineering, procurement and construction (EPC) contractor.

The firm’s triple role as an equity investor, EPC contractor and offtaker ensures that “we keep the focus on lowest cost of green hydrogen or ammonia”, notes Edmondson.

“Despite being the EPC contractor and a major investor in NGHC, Air Products’ primary objective is to generate revenue out of selling the ammonia that they have agreed to offtake from NGHC, not through the EPC contract,” he adds.

Phase two

With construction well under way for the integrated Neom green hydrogen and ammonia project, NGHC and its shareholders are now looking at a potential second phase.

“The Neom green hydrogen project is not expected to be a single investment,” says Edmondson.

“With all the ammonia to be produced at the plant under construction already sold to Air Products, there remains an interest in looking at additional investments for both the export market as well as the local market requirements for green hydrogen.”

Neom, which aims to be carbon-free and 100 per cent powered by renewable energy, is considering alternative fuels such as green hydrogen to achieve that goal.

Potential applications include mobility, given the plan to develop a rail system and other modes of transport for Neom.

“There was no domestic demand for green hydrogen fuel when the project was originally conceived in 2019. The market is continuing to evolve and we now see a stronger business case for local supply of green hydrogen,” says Edmondson.

The next phase is envisaged to be another large-scale project addressing domestic and international demand for green hydrogen and green ammonia.

Edmondson says more serious discussions about the project’s next phase will be on the agenda in 2024.

Ongoing innovation

The groundwork for the more widespread adoption of green hydrogen in Neom and across Saudi Arabia is under way.

In 2024, Neom’s energy and water subsidiary Enowa will open the Hydrogen and Innovation Development Centre (HIDC), which aims to produce and adopt decarbonised and clean synthetic fuels in partnership with Saudi Aramco. 

Initially, the NGHC project at the HIDC will gather operational data from the facility’s first 20MW electrolyser from Germany’s ThyssenKrupp Nucera, which will be used at the NGHC plant.

This will help advance Enowa’s plans with Air Products Qudra to test advanced hydrogen fuel cell-based mobility and logistics solutions at Neom. 

Neom factor

As a trailblazing project, Edmondson recognises the many opportunities that Neom has provided.

“We have had excellent support from Neom on both our land and permitting requirements as we have developed the project,” he says.

“We have also benefitted from legislation that allowed the first private grid in the kingdom and were granted the first industrial licence in Saudi Arabia for a green hydrogen plant.

“Neom has certainly risen to the challenge of supporting investors to make the project a reality.”

https://image.digitalinsightresearch.in/uploads/NewsArticle/11317662/main2557.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • UAE and Turkiye ties deepen

    4 July 2025

    Commentary
    Colin Foreman
    Editor

    Read the July issue of MEED Business Review

    The growing trade volumes between the UAE and Turkiye involve a mix of competition and collaboration across various sectors. 

    One area of competition is aviation. Turkish Airlines has emerged as a major global player over the past 20 years, with its network now covering more countries than any other airline.

    Turkiye’s aviation sector entered a new era in 2019 when Istanbul Grand airport opened. The first phase has the capacity to handle 90 million passengers a year, and the plan is for the capacity to reach 200 million once later phases are completed. 

    The airport’s globally strategic location combined with its large and expandable capacity will give Turkiye’s aviation
    sector an edge over its competitors in the Gulf over the next decade as construction starts on major airports, including Dubai and Riyadh. 

    While competition is evident, Turkish Airlines insists there is enough room for it and the Gulf airlines to grow as the centre of gravity for global aviation shifts from west to east.

    On a macro level, the UAE and Turkiye are complementary economies

    Beyond aviation, the trade relationship encompasses a wide range of sectors, including defence, logistics and construction. Over the past two years, Turkish contractors have secured significant contracts in the UAE. Turkish construction companies are now exporting the experience they have gained on projects in Turkiye to the UAE, as major government- backed infrastructure projects that include airports and railways move into tendering. 

    At the same time, UAE investments in Turkiye’s energy and financial sectors are growing, with notable examples including Emirates NBD’s investment in DenizBank and International Holding Company’s investment in Kalyon Energy. 

    These investments show that on a macro level, the UAE and Turkiye are complementary economies, with each holding a different mix of resources, capital and expertise. The strategic location of both countries amplifies the business case for trade even further.

    READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF

    UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge

    Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:

    > PROJECTS MARKET: GCC projects market collapses
    > GULF PROJECTS INDEX: Gulf projects index continues climb
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14201376/main.gif
    Colin Foreman
  • Building on UAE-Turkiye trade

    4 July 2025

    This package on UAE-Turkiye relations also includes:

    > UAE-Turkiye trade gains momentum
    > Turkiye’s Kalyon goes global
    > UAE-Turkiye financial links strengthen
    > Turkish Airlines plans further growth

     

    The UAE-Turkiye Comprehensive Economic Partnership Agreement (Cepa) that came into effect in September 2023 has already exceeded expectations. 

    Non-oil trade between the UAE and Turkiye grew by 11.5% in 2024, reaching a total of $40.5bn. This milestone surpasses a target of the Cepa three years earlier than planned. As a result, Turkiye is now the UAE’s fourth-largest non-oil trading partner, rising from seventh place in 2021.

    Trade between the UAE and Turkiye is growing strongly, with both countries increasingly viewed as strategic hubs for accessing broader markets. 

    The growth story builds on already established business links between the two countries. 

    “UAE-based companies and funds are already very active in Turkiye,” says Burak Daglioglu, president of the investment and finance office of the Presidency of the Republic of Turkiye. 

    “Firms like DP World and others in private equity and venture capital are playing a key role.”

    Strengthening ties

    Since the Cepa was signed in 2023, bilateral investment has accelerated, with Turkish companies also expanding into the UAE. 

    “That’s the mark of a healthy relationship,” he says. “When it’s balanced and bilateral, it’s more sustainable.”

    He adds that companies in both countries see the other not just as a market, but as a hub. “UAE firms use Turkiye to access Europe and Central Asia; Turkish firms use the UAE to reach Asia and Africa. This creates a complementary strategy for both sides.”

    In the energy sector, the focus is on renewables, with UAE firms eyeing major solar and wind projects in Turkiye. “We have huge potential in renewables, and there are ongoing talks with UAE investors,” says Daglioglu.

    In technology, Turkiye is emerging as a regional player in artificial intelligence (AI), financial technology (fintech), and healthcare technology.

    “Our infrastructure is increasingly AI-ready,” he says. “We have data centres, renewable power sources and connectivity. 

    “We also have a robust startup ecosystem, with early-stage funding rising from under $100m a decade ago to over $1bn today.”

    Defence is another key area of cooperation. “There are some ongoing projects in the defence sector between Turkiye and the UAE,” Daglioglu says. “It’s better not to name names at this stage, but it’s a promising area.”

    Venture capital (VC) is also playing an important role in promoting regional innovation. “Ten years ago, the startup scene was nascent. Now, it’s a cornerstone of our investment strategy. Dubai, as a regional VC hub, has been instrumental.”

    To support this growth, Turkiye has developed local VC legislation and attracted international funds, including those from Saudi Arabia, UAE family offices and corporate investors. A joint UAE-Turkiye technology fund worth $300m is also nearing finalisation. 

    “It’s not just about exits anymore. Turkish startups are scaling regionally and globally, with Dubai often serving as their capital and client gateway.”

    Turkiye is also a major industrial hub and, with a population of 85 million, has extensive human resources. “We have the talent, the infrastructure and the resilience,” he says. 

    “From automotive and mobility to chemicals and energy storage, we are expanding our industrial base.”

    We have huge potential in renewables, and there are ongoing talks with UAE investors

    Looking ahead

    Turkiye’s trade with the UAE and the rest of the GCC could be enhanced even further with the Development Road project, which is a 1,200-kilometre highway and railway linking Iraq’s southern Faw Port to Europe through Turkiye. 

    “The Development Road will not happen overnight – it’s a long-term, complex undertaking,” Daglioglu says. “But its impact will be global. Reducing shipping lead times between Asia and Europe by up to a week is hugely significant in today’s fast-moving markets.”

    Designed to connect the Gulf to Europe through Turkiye, the Development Road includes a high-speed rail network for both cargo and passengers, as well as a parallel motorway.

    For Daglioglu, the Development Road corridor offers Turkiye, the UAE and the GCC  states another platform for economic diversification.

    “This is more than a transport project, it’s a regional realignment,” he says. 

    “It will unlock a flow of goods, people, capital and data. Fibre infrastructure can run alongside the rail and motorway, creating a dual-purpose corridor that will support our AI and digital economy ambitions.”

    Historically, Turkiye has been well integrated with northern markets in Europe. Due to years of conflict in Iraq and Syria, however, its southern connectivity has lagged. 

    The Development Road, along with recent discussions to reopen direct links with Syria, offers opportunities for southern expansion.

    “We have invested heavily in northern logistics. Now, it’s time to strengthen our southern corridor,” Daglioglu says. “The Development Road could finally make direct access to the GCC markets a reality.”

    The corridor could also open up new avenues for digital infrastructure, such as subsea cables and terrestrial fibre,
    further linking the region’s digital economies.

    “This could be the basis for a digital Silk Road, supporting everything from AI to fintech.” 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14201047/main.gif
    Colin Foreman
  • King Salman airport sets July deadline for fourth runway bids

    4 July 2025

     

    King Salman International Airport Development Company (KSIADC) has allowed firms until 8 July to bid for the design-and-build of the fourth runway at King Salman International airport (KSIA) in Riyadh.

    The tender was floated on 17 April. The previous bid submission deadline was 17 June.

    It is understood that the third and fourth runways will add to the two existing runways at Riyadh’s King Khalid International airport, which will eventually become part of KSIA.

    KSIADC, which is backed by Saudi Arabia’s Public Investment Fund, prequalified firms in September last year for the main engineering, procurement and construction packages; early and enabling works; specialist systems and integration; specialist systems, materials and equipment; engineering and design; professional services; health, safety, security, environment and wellbeing services; modular installation and prefabrication; local content; and environmental, social and governance and other services.

    The entire scheme is divided into eight assets. These are:

    • Iconic Terminal
    • Terminal 6
    • Private aviation terminal 
    • Central runway and temporary apron
    • Hangars
    • Landside transport
    • Cargo buildings
    • Real estate

    In August last year, KSIADC confirmed it had signed up several architectural and design firms for the various elements of the project.

    UK-based Foster+Partners will design the airport’s masterplan, including the terminals, six runways and a multi-asset real estate area.

    US-based engineering firm Jacobs will provide specialist consultancy services for the masterplan and the design of the new runways.

    UK-based engineering firm Mace was appointed as the project’s delivery partner, and local firm Nera was awarded the airspace design consultancy contract.

    Project scale

    The project covers an area of about 57 square kilometres (sq km), allowing for six parallel runways, and will include the existing terminals at King Khalid International airport. It will also include 12 sq km of airport support facilities, residential and recreational facilities, retail outlets and other logistics real estate.

    If the project is completed on time in 2030, it will become the world’s largest operating airport in terms of passenger capacity, according to UK analytics firm GlobalData.

    The airport aims to accommodate up to 120 million passengers by 2030 and 185 million by 2050. The goal for cargo is to process 3.5 million tonnes a year by 2050.

    Saudi Arabia plans to invest $100bn in its aviation sector. Riyadh’s Saudi Aviation Strategy, announced by the General Authority of Civil Aviation (Gaca), aims to triple Saudi Arabia’s annual passenger traffic to 330 million travellers by 2030.

    It also aims to increase air cargo traffic to 4.5 million tonnes and raise the country’s total air connections to more than 250 destinations. 

    READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF

    UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge

    Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:

    > PROJECTS MARKET: GCC projects market collapses
    > GULF PROJECTS INDEX: Gulf projects index continues climb
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14200608/main.jpg
    Yasir Iqbal
  • Omani industrial zone attracts $15m investments

    4 July 2025

    Al-Mudhaibi Industrial City in Oman, operated by the Public Establishment for Industrial Estates (Madayn), has signed two investment agreements valued at RO5.75m (about $15m).

    The agreements pave the way for the establishment of six new factories spread across more than 21,000 square metres in Al-Mudhaibi Industrial City.

    The first agreement, signed between Madayn and Global Prime Matter, involves setting up four factories to produce electrical materials, electronics, home furniture and cold storage supplies. The total investment for this project is $13m, with operations to be based on a 14,538 sq m plot.

    The second agreement, signed with Middle East Livestock Company, includes an automated poultry abattoir and a disinfectant production factory. The project, spread over 7,000 sq m, will see investment of over $1.94m.

    Said Bin Khalfan Al-Shabibi, acting director-general of Al-Mudhaibi Industrial City, said the industrial zone attracted five industrial projects in the last quarter of 2024, worth a combined $15m.

    Those agreements followed a campaign to attract investments in October, raising total investment in Al-Mudhaibi Industrial City to $30.14m across 75,000 sq m.

    Al-Shabibi added that the tender for the first development phase of Al-Mudhaibi Industrial City is expected to be awarded later this year. This phase will include infrastructure works such as internal roads, perimeter fencing, gate facilities, construction of offices and facility buildings, and utility networks for electricity, water, sewage and Internet. It will also include plans for Madayn’s entrepreneurial and agricultural complexes.

    Al-Mudhaibi Industrial City spans 9 million sq m in Oman’s North Al-Sharqiyah governorate, with phase one covering around 1.5 million sq m. It is located near the main highway linking the Special Economic Zone at Duqm (Sezad) with ports and border points in the sultanate.

    The development of the industrial zone is part of a national strategy to drive economic growth in North Al-Sharqiyah, and is a component of Oman Vision 2040.

    ALSO READ: Oman issues tender for mining cluster development

    READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF

    UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge

    Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:

    > PROJECTS MARKET: GCC projects market collapses
    > GULF PROJECTS INDEX: Gulf projects index continues climb
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14195188/main3912.jpg
    Indrajit Sen
  • Soudah Peaks outlines project construction plans

    3 July 2025

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Soudah Development Company (SDC) has outlined plans to tender the upcoming construction work at its Soudah Peaks project in the Aseer region.

    While presenting a webinar hosted by MEED on 3 July, Daniel McBrearty, chief development officer at Soudah Peaks, said: “We have several packages ready to be floated to the market by the end of this year.

    “The most immediate of these is the development of site-wide infrastructure required for the project.

    “The high-voltage electrical infrastructure catering to Soudah Peaks will be tendered by Saudi Electricity Company.”

    This package includes one bulk supply point with a capacity of 380kV /132kV, two primary substations and 142 distribution substations.

    The development will also require 15 water storage tanks and pump stations. The tanks will have a storage capacity of 93,150 cubic metres to cater to an expected demand of about 10,984 cubic metres a day (cm/d).

    A total of 14 sewage treatment plants are also planned, with a total capacity of 10,690 cm/d. The development will require 52 sewage lifting stations.

    The infrastructure package will also cover 24 mobile telecommunications or GSM (global system for mobile communications) towers and the relocation of eight existing GSM towers, as well as a package for the drainage culvert.

    SDC began the project procurement process in May when it floated a tender to bid for a contract to develop an employee housing package that will be developed using a design, build, finance, operate and maintain model.

    The tendering timelines are:

    • WP1 Zone 1 Tahlal Town Centre: May 2026
    • WP2 Zone 1 Tahlal Ridge: August 2026
    • WP3 Zone 1,2,3,6 Tahlal residential, Sahab, Sabrah and Redrock: June 2026
    • WP4 Zone 5 Rijal: April 2026
    • WP5 Site-wide infrastructure: December 2025
    • General Contractor: Floated in May 2025
    • Contractor Workforce Housing: Floated in March 2025
      Six development zones

      “The overall masterplan covers an area of more than 635 square kilometres and consists of six development zones: Tahlal, Sahab, Sabrah, Jareen, Rijal and Red Rock,” McBrearty said.

      Tahlal will offer a mix of residential, hospitality, heritage and retail facilities, along with an 18-hole golf course and the Watan Am-Soudah heritage village.

      Sahab will be an international destination for adventure sports and recreation. It will provide views across the valley and within the rolling plateau landscape.

      Sabrah will provide a luxury residential destination supported by high-end hospitality. The development is designed to be integrated within the contours of the southern plateau of Soudah Peaks, with a focus on natural open spaces.

      Rijal will be a hospitality destination with integrated views through to the Rijal Cultural Village. The development will be built around the existing village, which gives it its character.

      The Red Rock zone will offer luxury hospitality, with mansions and glamping camps set within the national park.

      Jareen will allow guests to connect with nature through its agricultural landscape. Visitors can expect authentic experiences such as exploring the mountainside on walking paths and visiting local organic farms.  

      Jareen will be developed as part of the third phase, when the infrastructure and connectivity are fully established within the development.

      Three phases

      “The masterplan will be developed in three phases, and the first phase will include the development of five out of the development’s six zones,” McBrearty said.

      The overall development will offer 2,810 hotel rooms, 1,337 residential units and 30 other attractions.

      The first phase will include 940 hotel keys, 391 residential units and 1,025 staff accommodation units.

      The second phase will increase the total to 1,735 hotel rooms, 641 residential units and 2,150 staff accommodation units.

      The final phase will have over 2,810 hotel rooms, 1,337 residential units and 3,022 staff accommodation units.

      We have several packages ready to be floated to the market by the end of this year. The most immediate of these is the development of site-wide infrastructure
      Daniel McBrearty, Soudah Peaks

      Companies engaged

      In March, SDC appointed US-based engineering firm Aecom as the lead design consultant for the Soudah Peaks development.

      Aecom’s scope of work covers the design work for the first phase of the development.

      Last year, SDC appointed another US-based engineering firm, Parsons Corporation, as the project management consultant for the development.

      Parsons’ scope of work includes project management and site supervision services for the six development zones.

      Project background

      Soudah Peaks is a mountain tourism destination set 3,015 metres above sea level on the country’s highest peak in the Aseer region.

      The project masterplan was formally launched in September 2023 by Saudi Arabia’s Crown Prince Mohammed Bin Salman Al-Saud.

      Speaking at the launch, he said: “Soudah Peaks will be a significant addition to the tourism sector in Saudi Arabia and place the kingdom on the global tourism map while highlighting and celebrating the country’s rich culture and heritage.” 

      Launched in 2021, SDC is wholly owned by Saudi Arabia’s sovereign wealth vehicle, the Public Investment Fund.

      An investment of SR11bn ($3bn) has been planned to develop tourism infrastructure and attractions in the Aseer region in the southwest of the kingdom.

      SDC intends to partner with the local community and private sector to develop hospitality, residential, commercial and entertainment offerings that will attract more than 2 million visitors a year, creating 8,000 direct and indirect permanent jobs by 2030.

      Aseer region seeks new investments for Saudi Arabia

      https://image.digitalinsightresearch.in/uploads/NewsArticle/14194455/main.jpg
      Yasir Iqbal