Saudi Arabia is set to construct Hydrogen City, a key part of its Neom megaproject, aiming to produce 600 tons of green hydrogen per day. This bold initiative is a major step in the country’s push toward clean energy and away from its traditional oil-based economy.
Hydrogen, the most abundant element in the universe, is gaining momentum as a clean, carbon-free fuel with the potential to replace fossil fuels. Vyacheslav Zgonnik, CEO of Natural Hydrogen Energy, emphasizes its versatility, stating, “I believe it has the potential to replace all fossil fuels.”
Hydrogen City: Saudi Arabia’s Green Energy Hub
The $8.4 billion power plant will be one of the world’s largest renewable energy facilities, located within Saudi Arabia’s futuristic Neom megaproject. With plans to generate 4 GW of renewable energy, the plant will produce up to 600 tons of green hydrogen daily, with full completion expected by the end of 2026.
The project is spearheaded by Neom Green Hydrogen Company (NGHC), a joint venture involving Saudi firm ACWA Power, American company Air Products, and Neom Future City (NHC), led by Crown Prince Mohammed bin Salman. The hydrogen produced will play a crucial role in Saudi Arabia’s shift from oil to green energy, while also powering the Neom cities.
A Milestone in Renewable Energy
Construction of Hydrogen City began in March 2023, with significant progress made, including the assembly hall and two 70,000-ton ammonia tanks. Electrolyzers from Germany’s Thyssenkrupp Nucera are expected to arrive soon, according to David Edmonson, CEO of NGHC.
Once operational, the plant will generate about 1.2 million tons of liquid ammonia annually, with Air Products securing a 30-year production contract. “We have the financing, and it’s in execution. We are totally focused on finishing by the end of 2026, with possible ammonia production starting earlier,” Edmonson noted.
Strategic Importance for Global Energy Transition
As the world shifts towards green energy, Saudi Arabia is positioning itself as a major player in the hydrogen market. The European Union, aiming to produce 10 million tons of green hydrogen and import an additional 10 million tons by 2030, will be a key customer.
Hydrogen City marks a pivotal moment in the global energy transition, reinforcing Saudi Arabia’s role as a strategic hub for sustainable energy solutions.