NEOM Green Hydrogen CEO: Saudi Arabia to Lead Global Green Hydrogen Production, Reducing 5 Million Tonnes of CO2 Emissions Annually
NEOM Green Hydrogen CEO Wesam Al-Ghamdi emphasized the importance of clean hydrogen in achieving sustainable decarbonization and combating climate change.
Once burned, hydrogen produces only water, making it carbon-free in its end use.
The International Energy Agency highlighted the role of green hydrogen in decarbonizing sectors like long-haul transport, chemicals, and iron and steel in its 2023 annual report.
NEOM Green Hydrogen's plant in the $500 billion giga-project will be operational by 2026, producing up to 600 tonnes of clean hydrogen per day, which will be exported globally as green ammonia.
Al-Ghamdi, an official from Saudi Arabia's Maa'den company, emphasized the importance of clean hydrogen in achieving net zero emissions, particularly in industries like steelmaking and mining.
He highlighted the role of the Neom Green Hydrogen Company (NGHC) in this transition, as Saudi Arabia aims to become a leading hydrogen producer and exporter, producing four million tons per year by 2030.
The NGHC plant is making progress and will be a pioneer in the green hydrogen industry.
Saudi Arabia's National Gas Company (NGHC) aims to produce green hydrogen on a large scale and at the lowest cost in the market by 2026, according to CEO Al-Ghamdi.
The Kingdom's expertise in renewables and abundant natural resources, including wind, sun, and land, make it a prime candidate for leading green hydrogen production.
NGHC is contributing to Saudi Arabia's economic and environmental transformation by developing and exporting renewable energy, as part of the country's efforts to diversify its economy beyond oil, as outlined in Vision 2030.
Al-Ghamdi, a representative of NGHC, discussed the company's green hydrogen project, which is expected to be operational in 2026 and reduce 5 million tonnes of carbon dioxide emissions annually.
He emphasized the importance of clean hydrogen in the future energy mix, particularly for hard-to-decarbonize sectors like heavy trucks and machinery.
NGHC is currently expanding its team, recruiting both locally and globally to prepare for its operational phase in the next two years.
The NGHC official announced that once fully operational, their hydrogen plant will create 300 direct jobs and more indirectly through contractors and technology partners.
NGHC is committed to investing in and cultivating a skilled workforce through education, training, and upskilling programs.
They are also collaborating with local communities and education institutions in Saudi Arabia to promote the hydrogen industry to young people.
The construction of the green hydrogen plant is ongoing, with the first six wind turbines delivered to the Port of NEOM in October.
A representative from the Neom Green Hydrogen Company (NGHC) announced that the organization is anticipating several key deliveries for wind turbines, hydrogen facility equipment, wind garden, and solar farm this year.
NGHC, a joint venture between ACWA Power, Air Products, and NEOM, has already achieved financial closure for its green hydrogen plant, making it unique among similar projects globally.
With a total investment of $8.4 billion, NGHC is the only project to have secured financing, started construction, and is on track for full production.
Financial closure in May 2023 marked a significant milestone for the project, showcasing its strength and enabling faster construction progress.
NGHC, a green hydrogen production company, signed a 30-year offtake agreement with Air Products in October 2023.
The agreement allows Air Products to export 100 percent of the green hydrogen produced by NGHC.
The CEO of NGHC, Nadhmi Al-Ghamdi, emphasized the potential of the young green hydrogen industry and NGHC's role in proving its business case at scale.
Al-Ghamdi succeeded David Edmondson as CEO in October, having previously worked at Ma’aden.
The next two years will focus on constructing NGHC's giga-scale facility for the operational phase of the project.
Wesam Al-Ghamdi, with 25 years of experience in engineering, operations, and project management at companies like Saudi Basic Industries Corp. and Shell, has been appointed to oversee the completion of the project.