CEO of NEOM Green Hydrogen Co.: Plant Construction Making Significant Progress

The CEO of NEOM Green Hydrogen Co. has announced progress on building the world’s largest hydrogen plant in Saudi Arabia’s NEOM region.

Wesam Al-Ghamdi revealed that the construction of the plant in NEOM’s city of “Oxagon” is advancing significantly.

Speaking to Asharq Al-Awsat, Al-Ghamdi revealed that his company received initial supplies and is now focusing on installation, expecting more deliveries this year.

The CEO reaffirmed that he aims for significant construction progress this year, gearing up for full operations by 2026.

Al-Ghamdi referenced the company’s notable accomplishment in 2023, reaching full financial closure in May of the previous year after securing a total funding of $8.4 billion.

The CEO highlighted the importance of getting started at the NOEM green hydrogen complex. He mentioned that even though it’s in the early stages with support from ACWA Power, Air Products, and NEOM, the funding has helped speed up construction.

He emphasized how this financial backing shows confidence in the project’s economic value and its goal of creating the biggest hydrogen plant globally.

Hydrogen Production

Al-Ghamdi explained that in 2023, the company focused on completing basic construction works to prepare for receiving key supplies at their NEOM site. The first six wind turbines arrived in October at NEOM’s port in “Oxagon,” a city focused on clean industries.

He stressed his company’s confidence in scaling up green hydrogen production at the lowest cost possible by 2026. Saudi Arabia aims to lead globally in hydrogen production and exports, aligning with green initiatives. The target is to produce 4 million tons of clean hydrogen annually by 2030.

Saudi Arabia Leading in Green Hydrogen

Al-Ghamdi predicted that Saudi Arabia will take the lead in producing green hydrogen soon, tapping into its vast experience and natural resources like wind and solar power.

He stressed that the NEOM green hydrogen project aims to play a big role in achieving this ambitious goal.

Once operational, the plant is expected to churn out 600 tons of carbon-free hydrogen daily by 2026, enough to power around 20,000 hydrogen buses.

It also plans to produce 1.2 million tons of green ammonia yearly for global export. The company will have a special pier for shipping the hydrogen as ammonia directly from its site.

Al-Ghamdi highlighted the project’s importance, saying it aligns with the goals of Saudi Arabia’s national transformation plan, Vision 2030, and will help remove carbon from major sectors like transportation and heavy industries.

NEOM Green Hydrogen Project Leads in Full Funding

Al-Ghamdi highlighted that while many green hydrogen projects globally are still in early planning, the NEOM one stands out as the only project fully funded. This achievement came through an exclusive deal with Air Products to buy all their green hydrogen output for export over three decades.

Al-Ghamdi noted that the emerging green hydrogen sector offers significant global opportunities. NEOM Green Hydrogen aims to showcase these opportunities by proving the economic feasibility of large-scale green hydrogen production and its potential for extensive growth.

Clean hydrogen is increasingly seen as a key solution to combat climate change. As countries strive for carbon neutrality, clean hydrogen is expected to play a vital role in speeding up the transition to cleaner energy and industries, providing the only viable way to remove carbon on a large scale.

NEOM Green Hydrogen Plant Aims to Offset 5 Million Tons of CO2 Annually

Al-Ghamdi affirmed that the plant, upon full operation by 2026, aims to offset up to 5 million tons of carbon dioxide annually.

Clean hydrogen is seen as crucial in addressing emissions from industries heavily reliant on it, such as transportation and heavy machinery.

The CEO emphasized its potential for remote areas where continuous operation is vital, like around-the-clock trucking.

Moreover, Al-Ghamdi highlighted that hydrogen combustion solely produces water vapor, making it a carbon-free end product. In addition to its environmental benefits, the NEOM green hydrogen plant aims to foster international collaboration and invest in clean energy technology.

The International Monetary Fund (IMF) approved the third review of Sri Lanka's $2.9 billion bailout on Saturday but warned that the economy remains vulnerable.
In a statement, the global lender said it would release about $333 million, bringing total funding to around $1.3 billion, to the crisis-hit South Asian nation. It said signs of an economic recovery were emerging, Reuters reported.
In a note of caution, it said "the critical next steps are to complete the commercial debt restructuring, finalize bilateral agreements with official creditors along the lines of the accord with the Official Creditor Committee and implement the terms of the other agreements. This will help restore Sri Lanka's debt sustainability."
Cash-strapped Sri Lanka plunged into its worst financial crisis in more than seven decades in 2022 with a severe dollar shortage sending inflation soaring to 70%, its currency to record lows and its economy contracting by 7.3% during the worst of the fallout and by 2.3% last year.
"Maintaining macroeconomic stability and restoring debt sustainability are key to securing Sri Lanka's prosperity and require persevering with responsible fiscal policy," the IMF said.
The IMF bailout secured in March last year helped stabilize economic conditions. The rupee has risen 11.3% in recent months and inflation disappeared, with prices falling 0.8% last month.
The island nation's economy is expected to grow 4.4% this year, the first increase in three years, according to the World Bank.
However, Sri Lanka still needs to complete a $12.5 billion debt restructuring with bondholders, which President Anura Kumara Dissanayake aims to finalize in December.
Sri Lanka will enter into individual agreements with bilateral creditors including Japan, China and India needed to complete a $10 billion debt restructuring, Dissanayake said.
He won the presidency in September, and his leftist coalition won a record 159 seats in the 225-member parliament in a general election last week.

CEO of NEOM Green Hydrogen Co.: Plant Construction Making Significant Progress