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
  • Lowest bidder emerges for Kuwait Airport Terminal 2 operations

    19 October 2026

     

    Ireland’s DAA International has emerged as the lowest bidder for the contract to operate, manage and maintain the new passenger Terminal 2 (T2) at Kuwait International airport, submitting an offer of KD419m ($1.35bn).

    Official price-opening records released by Kuwait’s Central Agency for Public Tenders on behalf of the Directorate General of Civil Aviation show three international airport operators submitted commercial bids for the tender.

    DAA International’s proposal undercut its nearest rival by about 45%. Turkiye’s TAV Airports Holding submitted the second-lowest offer at KD764.15m ($2.46bn), while South Korea’s Incheon International Airport Corporation bid KD959.48m ($3.1bn).

    All three proposals were marked as approved in the tender committee’s price disclosure.

    The contract entails the operation, management and improvement of training, maintenance and development services across Terminal 2 and its associated aircraft parking aprons.

    The remit also includes corporate management of centralised operation and maintenance across the broader Kuwait International airport model, centralising operational procedures, systems integration and service delivery across the aviation hub.

    Technical documents indicate the winning operator will oversee facility management, terminal operational readiness, passenger processing systems, apron operations and staff development programmes before and after the complex’s commercial launch.

    MEED reported in June 2023 that six airport operators had initially been invited to bid for the Terminal 2 operating concession.

    Terminal 2 is the centrepiece of Kuwait International airport’s multibillion-dollar expansion, aimed at boosting total handling capacity to 25 million passengers a year.

    Turkish contractor Limak Insaat is executing the main terminal building under an estimated $4.34bn contract awarded in 2016.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20747061/main.png
    Yasir Iqbal
  • Dubai tenders Al-Maktoum-Dubai South drainage scheme

    19 October 2026

    Dubai Municipality has invited contractors to submit bids by 5 November for the construction of a stormwater drainage system connecting Al-Maktoum Airport and Dubai South

    The project, designated TF-06-C2, involves approximately 20 kilometres of pipelines with diameters ranging from 400mm to 3,000mm. The works will use deep trenchless construction and conventional open-cut methods. 

    The scheme is one of four projects, for which a project management consultancy (PMC) tender was issued earlier this month.

    The tender for TF-06-S1 Supervision of Stormwater Drainage System Projects – Package 4 was issued on 6 October.

    The consultancy covers the following projects:

    • TF-06-C1: Construction of a stormwater pond connecting Al-Maktoum Airport and Dubai South
    • TF-06-C2: Construction of a stormwater drainage system connecting Al-Maktoum Airport and Dubai South
    • TF-07-C1: Construction of a stormwater drainage system on Sheikh Zayed Bin Hamdan Road connecting developers
    • TF-24-C1: Connecting developers’ areas to the stormwater networks in Dubailand 

    The projects are part of Dubai Municipality’s wider Tasreef programme, intended to increase Dubai’s rainwater drainage capacity by 700% by 2033 and provide capacity for the emirate’s needs for the next 100 years.

    Investment in the UAE water sector has been dominated by stormwater drainage and network resilience schemes this year, as Dubai Municipality advances procurement under its AED30bn ($8.1bn) Tasreef programme.

    TF-07-C1

    As previously reported, contractors are preparing to submit bids on 22 October for the main construction contract for TF-07-C1.

    The project covers more than 100 million square metres between Sheikh Mohammed Bin Zayed Road and Emirates Road, and from Expo Road to Dubailand.

    It will provide stormwater infrastructure and service connections for more than 20 private developers and Al-Yalayis 5, as well as supporting major roads in the Jebel Ali area. The construction scope includes a major gravity drainage system with pipeline diameters of up to 3,000mm.

    TF-24-C1

    Bids for TF-24-C1 were submitted on 1 October, with Nael Construction & Contracting, Al-Nasr Contracting Company and Al-Kharafi & Sons understood to be among the bidders. 

    The project will connect developers’ areas in Dubailand to the stormwater network. It includes 18km of stormwater drainage pipelines with diameters of up to 1,800mm and 3.5km of gravity sewer pipelines with diameters of up to 1,000mm.

    As MEED understands, the main contract tender for TF-06-C1 has yet to be released.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20746611/main.jpg
    Mark Dowdall
  • Contractor wins $44m Morocco rail stations deal

    19 October 2026

    Morocco’s national railway operator, Office National des Chemins de Fer (ONCF), has awarded a MD437.6m ($44.5m) contract to local firm Jet Contractors to build five railway stations along the Benguerir-Marrakech corridor.

    The project forms part of the wider Kenitra-Marrakech high-speed rail development programme.

    Jet Contractors will build one high-speed rail station and four regional express rail stations.

    These include two stations in Benguerir, and one each at Sidi Bou Othmane, Sidi Ghanem and Marrakech Stadium.

    The scope of work includes construction and fit-out of the stations and associated infrastructure, including concrete structures, platforms, ancillary facilities, passageways, circulation areas and connection zones within the stations.

    It also covers architectural finishing works; testing and commissioning of electrical networks; and all mechanical, electrical and plumbing services.

    The contractor will also provide all safety, security and protection systems, including alarms, fire detection and firefighting systems, and surveillance systems.

    Morocco awarded multiple civil works contracts in 2024 to international and local firms to build its Kenitra-Marrakech high-speed railway line.

    The rail project is part of a $37bn strategy to connect more of Morocco’s cities, ports and airports by rail. It will stretch 375 kilometres from Kenitra on the northwest coast to Marrakech in the south.

    The project is divided into seven lots, each measuring 36km to 64km. The rail link will pass through cities including Rabat, Sale and Casablanca.

    The link will extend the Al-Boraq high-speed rail line between Tangier, Rabat and Casablanca. The line began operating in 2018 and was Africa’s first high-speed railway system.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20745963/main.jpg
    Yasir Iqbal
  • Firms submit Dubai multibillion-dollar road scheme interest

    19 October 2026

     

    Register for MEED’s 14-day trial access 

    Contractors submitted expressions of interest on 10 October for a design-and-build contract for a multibillion-dollar new road that will run parallel to Sheikh Zayed Road.

    Dubai’s Roads & Transport Authority (RTA) held an online meeting after the submissions to prepare for the prequalification phase of tendering, expected to start in a few weeks.

    The scope covers about 30 kilometres (km) of works.

    These include about 15km of viaduct along First Al-Khail Street and more than 14.5km of bridge ramps, along with other associated infrastructure works.

    The RTA floated the expression of interest notice to contractors in early September.

    The project is another significant initiative aimed at alleviating pressure on the existing Sheikh Zayed Road section from Hadiqa Street to Hessa Street.

    Dubai has previously explored bold concepts to expand capacity on Sheikh Zayed Road, including proposals to introduce double-decker sections to add extra lanes without widening the existing corridor.

    The idea was discussed in the context of rising congestion and limited right-of-way along one of the city’s busiest arterial roads, with elevated decks potentially carrying through traffic while existing at-grade lanes served local access.

    The plans ultimately became standalone schemes, with subsequent efforts focusing instead on corridor-wide upgrades, interchange improvements and complementary public transport expansions to manage demand more sustainably.

    The latest project aligns with Dubai’s continued investment in upgrading and expanding its road network to keep pace with rapid population growth and rising commuting demand.

    Planning for growth

    Dubai launched the 2040 Urban Master Plan in March 2021, referencing studies indicating that the emirate’s population will reach 5.8 million by 2040, up from 3.3 million in 2020. The daytime population is set to increase from 4.5 million in 2020 to 7.8 million in 2040.

    In December 2022, Sheikh Mohammed Bin Rashid Al-Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, approved the 20-Minute City Policy as part of the second phase of the Dubai 2040 Urban Master Plan. 

    In addition to the road projects, the RTA’s Dubai Metro Blue Line extension and Dubai Metro Gold Line form part of Dubai’s plans to improve residents’ quality of life by cutting journey times, as outlined in the policy.

    The policy aims for residents to have 80% of their daily requirements within a 20-minute journey, on foot or by bicycle. This goal will be achieved by developing integrated service centres with all necessary facilities and increasing population density around mass transit stations.

    READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

    Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20745908/main.jpg
    Yasir Iqbal
  • Libya seeks offshore contractors for $8bn gas project

    19 October 2026

    Libya’s Mellitah Oil & Gas Company (MOG) has invited companies to prequalify for a major offshore package as part of its Mellitah Complex Expansion & CO2 Management Integrated Development Project, which is estimated to be worth about $8bn.

    The package is estimated at around $3bn and focuses on developing offshore pipelines and subsea systems for the “E” Offshore Installation Project and CO2 project.

    The deadline to submit prequalification documents is 5 November. The contract will use the engineering, procurement, installation and commissioning (EPIC) model.

    MOG is a joint venture of Libya’s National Oil Corporation and Italian oil and gas company Eni.

    This is not the first time MOG has invited submissions for the offshore pipelines and subsea systems package. The company originally launched a prequalification process for the EPIC contract in 2021, but the project experienced delays and the process was eventually cancelled. The prequalification process was restarted nearly three years later, but it was also ultimately abandoned.

    Complex expansion

    As part of the Mellitah Complex Expansion & CO2 Management Integrated Development Project, two offshore structures – Structure A and Structure E – will be developed in Libya’s offshore block NC 41.

    Structure A is in the central-western part of the area, about 80 kilometres (km) from the Libyan coast, with a water depth of 95-105 metres.

    Structure E is located in the central-eastern part of the area, about 130km from the Libyan coast, in a water depth of 205-235 metres.

    The scope of the wider project includes:

    • A new wellhead platform installed in 96 metres of water as part of the development of Structure A
    • A new production platform installed in about 220 metres of water depth as part of the development of Structure E
    • Modification of the existing Sabratha platform
    • Sealines and subsea systems for structures A and E
    • Upgrading the existing onshore Mellitah complex
    Project contract awards

    In June 2024, MOG awarded an offshore engineering, procurement and construction (EPC) contract worth €1.2bn ($1.28bn), which was part of the Mellitah Complex Expansion & CO2 Management Integrated Development Project.

    The contract was awarded to a consortium of three Italian companies: Rosetti Marino, Kerry Project Logistics and Gruppo Antonini.

    In a statement, Rosetti Marino said its share of the project contract was worth €400m ($428m), comprising 33% of the total contract value.

    Rosetti Marino said its scope of work includes EPC and load-out activities to deliver the topside of the approximately 6,000-tonne gas production wellhead platform, named WHP-A, to be installed off the coast of Libya.

    Project setbacks

    During 2023 and 2024, several setbacks affected the Mellitah Complex Expansion & CO2 Management Integrated Development Project.

    In November 2023, MOG restarted the prequalification process for an upstream offshore package worth an estimated $700m.

    The project scope involves modifications to the offshore Sabratha platform at the Bahr Essalam field.

    Less than two months later, MOG restarted prequalification for a second package as part of the integrated development project.

    The scope of the second package covers key sealine and subsea systems.

    No reason was given for restarting the prequalification process for two of the project’s packages.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20738707/main.jpg
    Wil Crisp