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
  • Contractors prepare bids for Petro Rabigh bottom-of-the-barrel project

    30 October 2026

     

    Contractors are preparing proposals for Saudi Arabia’s Rabigh Refining & Petrochemical Company (Petro Rabigh) for a major project to increase output and improve the efficiency of its integrated refining and petrochemicals complex in Rabigh, on the kingdom’s Red Sea coast.

    Petro Rabigh’s downstream complex, which is majority-owned by Saudi Aramco, includes a topping refinery with a 340,000-barrel-a-day (b/d) crude-distillation unit, a 47,000 b/d hydrotreater, a 12 million-cubic-feet-a-day hydrogen plant, a 75,000 b/d naphtha Merox unit and a 60,000 b/d kerosene Merox unit. The complex also includes supporting utilities, product tankage and a marine terminal.

    The main objective of the bottom-of-the-barrel project is to convert low-value, high-sulphur fuel oil and heavy-residue streams – which account for about 20% to 22% of refinery output – into higher-value, cleaner products, including diesel and lighter distillates.

    Petro Rabigh aims to achieve residue-conversion capacity of about 64,000 to 75,000 b/d by adding integrated fuel-oil upgrading and diesel-treatment units.

    The company issued the main tender for engineering, procurement and construction (EPC) works earlier this year. Contractors have until 19 November to submit proposals, sources told MEED.

    The following companies are understood to be among those bidding for the project:

    • CTCI Corporation (Taiwan)
    • JGC Corporation (Japan)
    • Larsen & Toubro (India) / Technip Energies (France)
    • Tecnicas Reunidas (Spain)

    The overall scope of work on the project covers the construction of the following units:

    • A light-naphtha isomerisation unit
    • A deasphalting and dewaxing unit
    • An ebullated-bed processing unit
    • A sulphur block, comprising sulphur-recovery, acid-gas-removal, sour-water-stripping and sulphur-forming units
    • Sales-gas allocation facilities and associated pipeline works
    • Utilities outside battery limits
    • Auxiliary piping modifications
    • Utility and hydrocarbon tie-ins

    Petro Rabigh appointed Australia-headquartered Worley last year to carry out front-end engineering and design (feed) work for the bottom-of-the-barrel project.

    MEED also reported that Petro Rabigh appointed Worley to provide engineering and project-management consultancy (PMC) services for the project in the first quarter of this year.

    Under the contract, Worley will carry out engineering studies and PMC functions. It will also support the development of cost estimates, project-specific execution procedures and technical procedures in line with Saudi Aramco guidelines. The work covers both the design-basis scoping-paper stage and the subsequent feed stage.

    Petro Rabigh will draw on Worley’s expertise in design, procurement and processing technologies, including light-naphtha isomerisation; vacuum-residue processing through deasphalting and dewaxing; an ebullated-bed configuration integrated with the diesel-hydrotreating section; and unconverted-oil hydrotreatment.

    Worley recently confirmed its contract award from Petro Rabigh, saying it will deliver engineering, project management, procurement support and related consultancy services for projects across its client’s portfolio.

    The scope includes developing design-basis documents, conducting technical evaluations, preparing cost estimates, supporting feed tender packages and providing detailed engineering and execution-phase support as projects advance through development and delivery.

    The services will support the evaluation and development of potential new facilities and infrastructure across the complex, including process units, utilities, sulphur recovery facilities and associated infrastructure.

    “The work will help Petro Rabigh advance future projects aimed at enhancing the long-term value and performance of its refining and petrochemicals operations,” Worley said in a statement on 28 October.

    Separately, Petro Rabigh awarded US-based KBR a 10-year maintenance contract in February to support its polymer plants in Rabigh.

    KBR’s Technology Led Industrial Solutions business line will execute the operations and maintenance contract, sources told MEED. The business operates within the Houston-headquartered company’s Technology Solutions portfolio.

    In March 2024, Petro Rabigh also awarded KBR a similar five-year asset-condition-monitoring contract. Under that programme, KBR is providing predictive-maintenance services at Petro Rabigh’s main plant.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21032785/main.jpg
    Indrajit Sen
  • Contractors submit Riyadh Expo KSA pavilion bids

    30 October 2026

     

    Contractors submitted bids on 25 October for a contract to design and build the Saudi Arabia pavilion at the Expo 2030 Riyadh site.

    The facility will include exhibition halls, VIP and protocol areas, event and performance spaces, meeting rooms, food and retail outlets, and back-of-house facilities.

    The pavilion will host exhibitions, cultural and commercial showcases and official events throughout the six-month expo.

    External public realm works are also included.

    Expo 2030 Riyadh Company (ERC), tasked with delivering the Expo 2030 Riyadh venue, issued the main tender on 19 May, as MEED exclusively reported.

    Earlier this week, ERC appointed UK-based Mace as procurement advisory consultant for Expo 2030 Riyadh, supporting procurement activities across the programme.

    Under the appointment, Mace will provide procurement services and advise on the management and delivery of procurement activities, with the aim of supporting the expo’s wider programme objectives.

    Expo 2030 Riyadh will run from October 2030 to March 2031 with the theme Foresight for Tomorrow, with host authorities projecting approximately 42 million visits.

    The masterplan covers 6 square kilometres, making it one of the largest sites ever designated for a World Expo event.

    Situated north of the Saudi capital, the site is located near the future King Salman International airport and will provide direct access to Riyadh landmarks.

    The Public Investment Fund, Saudi Arabia’s sovereign wealth vehicle, launched Expo 2030 Riyadh Company – a wholly owned subsidiary – in June 2025 to build and operate facilities for Expo 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21031590/main.jpg
    Yasir Iqbal
  • Oman announces $790m industrial investment deals

    30 October 2026

    Oman’s Public Authority for Special Economic Zones and Free Zones has signed 28 investment agreements worth more than RO304m ($790m) for new projects and expansions across the country’s special economic zones, free zones and industrial cities.

    The agreements cover more than 2 million square metres (sq m) of land and span industrial manufacturing, food production, logistics, recycling and commercial activities.

    About $383.6m of the investment has been allocated to industrial cities operated by the Public Establishment for Industrial Estates (Madayn). Sohar Free Zone accounted for $152m, followed by the Special Economic Zone at Duqm (Sezad) with $143.1m, Salalah Free Zone with $85.6m and Khazaen Economic City with more than $27m.

    The projects are expected to support Oman’s efforts to diversify its economy, expand industrial production and attract private investment in line with Oman Vision 2040.

    Investment deals

    In Sohar Industrial City, Atlas Steel will invest more than $291.1m in a plant producing iron and steel products on a site of about 440,000 sq m.

    Fujian Mancheng Industries & Investment will invest $52m in a ceramics facility covering more than 241,000 sq m. Other investments in Madayn’s industrial cities include an $18.2m phosphate and nitrogen fertiliser plant planned by Gulf Company for Organic and Biological Fertilisers in Raysut, as well as projects involving structural metal products, paper and corrugated cardboard, and oil and gas equipment and services in Raysut, Ibri and Nizwa.

    In Sohar Free Zone, Sohar Automotive & Advanced Industries Company will invest $98.8m in an automobile assembly complex covering 317,000 sq m. The complex aims to attract vehicle manufacturers, automotive supply-chain companies and advanced-manufacturing businesses.

    Voltamp High Voltage Transformers has announced a $39m investment in a plant that will produce power and electrical-distribution transformers for regional and international markets.

    Lalan Middle East will invest a further $3.9m to expand its medical-device manufacturing facility.

    ALSO READ: Oman’s Madayn prepares $637m investment drive

    In Sezad, Al-Jazir Feed Plant will invest $104m in a shrimp-feed facility to support an integrated shrimp-farming project.

    In Salalah Free Zone, Al-Nawras Industries will invest $50m in a steel-structures manufacturing facility, while Integrated Gypsum Company will invest $20m in gypsum-products production. Marai Dhofar will invest $15.6m in the production of Italian cheeses and other dairy products.

    Projects in Khazaen Economic City include a plant by Aleemit International Services to manufacture electric-vehicle chargers and components, with an investment of more than $8.8m, and a $6.5m facility by Joger Modular Building Technologies to produce precast-concrete building components.

    Additional investments in Khazaen include construction materials, ready-mix concrete, industrial units, logistics facilities and warehouses.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21016368/main.jpg
    Indrajit Sen
  • Sabic swings back to profit in Q3 with $224m net income

    30 October 2026

    Register for MEED’s 14-day trial access 

    Saudi Basic Industries Corporation (Sabic) returned to profitability in the third quarter of the year, reporting adjusted net income of SR840m ($224m) as revenue and earnings improved from the previous quarter.

    The Saudi chemicals giant had posted an adjusted net loss of $100m in the second quarter.

    Revenue increased 14% on a quarter-on-quarter basis to $7.51bn, while adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) climbed 40% to $1.27bn. Adjusted Ebitda surged 434% to $578.67m.

    Sabic’s net debt stood at $808m as of 30 September compared with $728m as of 30 June.

    Adjusted earnings per share rose to SR0.28 ($0.07) from a loss of SR0.13 ($0.03).

    The recovery occurred despite persistent margin pressure across the global petrochemicals sector and heightened geopolitical risk in the Middle East.

    Additionally, Sabic said it achieved $949.33m of its broader portfolio optimisation programme target of $3bn by 2030 in positive recurring Ebitda impact from its transformation efforts.

    During the third quarter, Sabic received its Local Content Certificate for 2025 from the Local Content and Government Procurement Authority, recording a score exceeding 61% – an increase of more than nine percentage points over the prior evaluation period. The company attributed the increase to domestic procurement agreements, including a memorandum of understanding with Lenovo.

    Capital projects

    After several years of subdued project spending, Sabic is beginning to step up investment in new production capacity, with major projects reaching key milestones this year.

    In February, affiliate Petrokemya awarded China National Chemical Engineering Group Corporation the main engineering, procurement and construction (EPC) contract for a new ethylene oxide catalyst production facility. The 4,000-tonne-a-year (t/y) unit at Jubail Industrial City includes catalyst carrier washing, drying facilities and associated utilities.

    Major ammonia-urea complex

    In September, Sabic Agri-Nutrients awarded South Korea’s Samsung E&A a $3.465bn EPC contract for its seventh production complex in Jubail Industrial City (San VII).

    The project will have an annual capacity of approximately 1.2 million metric tonnes of conventional ammonia and 2.6 million tonnes of urea, integrated with a post-combustion carbon-capture unit.

    The Ministry of Energy approved feedstock allocation for the project in March. San VII will expand the company’s total urea capacity by 54%, from approximately 4.8 million t/y to 7.4 million t/y.

    The development reflects a shift in project scope. Originally conceived as San VI – a low-carbon facility designed to yield 1.2 million t/y of blue ammonia alongside specialised nutrients – the scheme was re-engineered as a conventional ammonia and urea plant using carbon-capture systems to manage emissions intensity.

    Construction is scheduled to begin in the fourth quarter of 2026. Commissioning is slated for the third quarter of 2030, with full commercial operation targeted before year-end 2030.

    Sabic Agri-Nutrients positions the project as central to its 2040 strategy to expand export market share and support international supply chains.

    Greenfield methanol plant

    San VII is not the only major project moving forward.

    Also in September, Sabic subsidiary Saudi Methanol Company (Ar-Razi) secured feedstock approval from the Ministry of Energy to build a 1.8 million t/y greenfield methanol plant in Jubail.

    The project aligns with Sabic’s focus on scale in core petrochemical chains and provides intermediate feedstock for expanding domestic downstream manufacturing.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21015944/main2510.jpg
    Indrajit Sen
  • Saudi Arabia’s NWC awards package 12 of sewage scheme

    30 October 2026

     

    Register for MEED’s 14-day trial access 

    Local contractor Al-Yamama has won the contract for package 12 of Saudi Arabia’s long-term operations and maintenance (LTOM) sewage treatment programme, sources close to the project have confirmed to MEED.

    It is understood that the contractor offered a levelised tariff of SR0.98 a cubic metre for the project.

    The state-owned National Water Company (NWC) is delivering the sewage treatment plant rehabilitation programme in two phases, including up to 19 packages.

    Known as the North Western B Cluster, LTOM12 was tendered last year, and bids were submitted in November 2025.

    Under the original scope, the contract covers the construction and upgrade of seven sewage treatment plants with a combined capacity of about 162,000 cubic metres a day (cm/d).

    In February, MEED exclusively reported that five bidders were awaiting a decision on the award.

    These included:

    • Alkhorayef Water & Power Technologies (Saudi Arabia)
    • Civil Works Company (Saudi Arabia)
    • Miahona (Saudi Arabia)
    • Beijing Enterprises Water Group – BEWG (Hong Kong)
    • Al-Yamama (Saudi Arabia)

    According to a source, NWC opened financial bids for the tender in April.

    The contract represents Al-Yamama’s first award under the LTOM programme. However, the contractor has previously worked with NWC on several water infrastructure projects and is continuing construction works on a treatment plant expansion project in Al-Khobar in the Eastern Province.

    Packages 10 and 11

    On 2 September, NWC announced the formal signing of a $347m contract with a Saudi-Chinese consortium for Northern Cluster Sewage Treatment Plants Package 10 (LTOM10). 

    LTOM10 was the first contract awarded under the second phase of NWC’s sewage treatment plant rehabilitation programme.

    The 15-year contract was signed with a tariff of SR0.69 ($0.18) a cubic metre.

    MEED exclusively reported in January that the consortium had won the contract, which has a combined treatment design capacity of more than 337,000 cm/d and covers plants across the Hail, Qassim, Al-Jouf and Northern Borders provinces. 

    The same consortium led by United Water (China) is also expected to formally sign a contract for LTOM11 in the coming months.

    NWC previously awarded $2.7bn-worth of contracts for the first phase of its LTOM programme. This comprises nine packages covering the treatment of 4.6 million cm/d of sewage water for the next 15 years.

    Under tender

    Two remaining packages in the LTOM programme are currently out for tender. As previously reported by MEED, bidders are preparing to submit offers for package 14, covering the upgrade of six existing sewage treatment plants (STPs), including a capacity expansion of 30,000 cm/d at the Al-Jarodia STP.

    Known as the Eastern A Cluster (LTOM14), the project will increase total treatment capacity from about 263,000 cm/d to approximately 293,000 cm/d, with an estimated cost of $180m. NWC tendered the package in April, and the latest bid submission deadline is 30 November.

    In the longer term, bids for package 16 of the LTOM programme are due by 3 May 2027. NWC tendered the contract earlier this month, as MEED reported exclusively.

    Under the original scope, the project is expected to cover the rehabilitation and upgrade of 14 STPs with a total design capacity of 153,000 cm/d.

    According to a source, bidders must first submit a letter of intent by 22 February 2027.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21010688/main.jpg
    Mark Dowdall