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NEOM to Begin First Commercial Green Hydrogen Output in 2027

Wesam Alghamdi, the chief executive officer at NEOM Green Hydrogen Company - Ashar Al-Awsat
Wesam Alghamdi, the chief executive officer at NEOM Green Hydrogen Company - Ashar Al-Awsat
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NEOM to Begin First Commercial Green Hydrogen Output in 2027

Wesam Alghamdi, the chief executive officer at NEOM Green Hydrogen Company - Ashar Al-Awsat
Wesam Alghamdi, the chief executive officer at NEOM Green Hydrogen Company - Ashar Al-Awsat

Saudi Arabia’s NEOM, the Public Investment Fund’s flagship development, is accelerating work as the Oxagon industrial city and the NEOM Green Hydrogen project move closer to production and operation.

Together, the two ventures are set to anchor the country’s shift toward clean energy and advanced industries, supporting Vision 2030 goals to cut carbon emissions and diversify the economy by building integrated industrial and technology ecosystems powered by renewable energy and innovation.

The progress reinforces NEOM’s position as a global hub for sustainable industries and future technologies.

Operations and maintenance

Wesam Alghamdi, chief executive officer of NEOM Green Hydrogen Company, said the facility is preparing to begin commercial production in 2027, following testing and commissioning phases scheduled for 2026.

He said the project is one of the most important pillars of the kingdom’s clean-energy transition and is aligned with Vision 2030 targets for decarbonization and net zero emissions.

He said the company is a joint venture between ACWA Power, Air Products and NEOM, and is located in Oxagon, the industrial city within the wider NEOM project.

The project consists of three primary sites: the hydrogen plant in Oxagon, a solar field about 80 kilometers to the east, and a wind turbine site about 120 kilometers to the north.

Speaking to Asharq Al-Awsat, he said the project will generate a total of 4 gigawatts of power for the hydrogen plant by the end of 2026, with commercial operations to start in 2027.

The plant will be able to produce 600 tons of hydrogen a day, which will be converted into 1.2 million tons of ammonia annually and shipped through a dedicated port that includes a purpose-built berth.

He added that construction began about two years ago and that more than 80 percent of the work is now complete. Solar and wind farms have reached advanced stages and are ready to supply power for testing and commissioning in 2026.

He said the company is not only building the plant but is also building its institutional structure. The workforce has reached about 350 employees, and the company has recruited the staff needed for operations, maintenance and supporting roles. It has also launched specialized training programs to prepare new graduates for careers in the emerging sector.

Alghamdi said the company’s location in Oxagon and its proximity to the hydrogen plant’s port were critical to the project’s progress.

All wind turbines were imported through NEOM Port and Oxagon’s logistics network, along with the main equipment for the hydrogen plant, including hydrogen storage vessels and the cooling box, which is a key component of the air separation unit used to produce nitrogen. Many other pieces of equipment also arrived through the NEOM and Oxagon port facilities.

He said Oxagon provides industrial investors with an integrated ecosystem that includes licenses, permits, port services and engineering and logistics support, helping the project achieve major milestones during execution.

The chief executive said what is being built is not just a plant but the start of a new industry that will serve as a global model proving that large-scale hydrogen production is possible.

On the economic and social impact, he said the company will create between 300 and 350 direct jobs at NEOM Green Hydrogen Company, many of which have already been filled. He said the project will also generate a multiplier effect of six to seven times in indirect jobs across supporting sectors.

He said the project’s presence in NEOM will open opportunities for developing upstream and downstream services, leading to continuous industrial support for long-term maintenance and operations.

He said the kingdom’s hydrogen industry will attract specialized companies in fields such as artificial intelligence, digitalization and engineering solutions, making it a new driver for Saudi economic diversification.

Future opportunities

Vishal Wanchoo, chief executive of Oxagon, said the project is the home of advanced and clean industries in NEOM and is one of the main engines of its economy. He said Oxagon has seen significant progress since its plan was launched in 2021.

The city is located on the Red Sea around NEOM Port, in a strategic position that offers excellent access to many regions, especially Europe and Africa, making it an ideal location for exports as well as serving Saudi Arabia.

He told Asharq Al-Awsat that NEOM Port is already operational and that efforts are under way to attract industrial companies to establish operations in Oxagon.

The NEOM Green Hydrogen project is the first of the major ventures, he said, describing it as a large-scale project for producing green hydrogen.

He added that Oxagon is developing an integrated renewable-energy ecosystem and expanding artificial intelligence data centers while strengthening the wider AI environment, which are among the industrial city’s core priorities.

He said NEOM Port is supporting the green hydrogen project by providing materials and handling complex shipments. He expressed strong optimism about the future opportunities linked to the project.

He said an integrated renewable-energy ecosystem is one of Oxagon’s top priorities, noting that work on green hydrogen began about four years ago and highlighted the importance of developing all components of the renewable-energy system to support the kingdom and its export capabilities as it transitions from traditional to clean energy.

He said Oxagon’s first three pillars focus on large-scale local manufacturing of wind-energy technology, midstream and end-stage production of solar-energy technologies, including solar cells, modules and raw materials, all of which will be produced in high-capacity factories capable of meeting Saudi Arabia’s renewable-energy needs and serving export markets.

He said work is also progressing on battery technologies, which he described as a central part of the renewable-energy system.

On clean and tech-driven industries, he said all Oxagon activities revolve around renewable energy, which is inherently clean.

The goal is not only to manufacture renewable-energy components but to power all industries in Oxagon entirely with renewable energy.

He noted that NEOM Green Hydrogen Company is one of the largest renewable-energy production projects and operates entirely on clean energy, enabling it to supply the same power to other industries in Oxagon.

He said the city’s technology focus is centered on artificial intelligence, and that there is a strong link between AI and renewable energy because one of the biggest challenges facing AI today is sustainability, given its high consumption of energy and water for cooling.

Oxagon aims to adopt sustainable solutions, including a major AI data center that will run on renewable energy and use seawater for cooling to ensure sustainable operations.

He said the goal is to move forward with discussions and finalize agreements that allow companies to launch operations. The plan is to start industrial production before the end of 2026 and reach full manufacturing capacity by 2027, amid rapid growth in renewable-energy and AI projects.

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NEOM Port Reshapes Global Trade Routes from Northern Saudi Arabia

NEOM Port in Saudi Arabia (NEOM)
NEOM Port in Saudi Arabia (NEOM)
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NEOM Port Reshapes Global Trade Routes from Northern Saudi Arabia

NEOM Port in Saudi Arabia (NEOM)
NEOM Port in Saudi Arabia (NEOM)

On April 15, Saudi Arabia’s NEOM posted a terse but telling message on X: “Europe- Egypt- NEOM- GCC: your faster route.”

Accompanied by a map, the post traced a corridor linking Europe to Egypt’s ports of Damietta and Safaga, on to NEOM Port, then overland to Kuwait, Iraq, Bahrain, Qatar, the United Arab Emirates and Oman.

It was not a routine update. It signaled that a long-discussed trade route is now operational.

That same day, the Public Investment Fund approved its 2026-2030 strategy, outlining Saudi Arabia’s economic path to the end of the decade. NEOM said it “remains a central pillar” of that transformation, with its designation as an independent system underscoring official commitment.

The timing indicated clear alignment between the port’s rollout and the broader national strategy.

On the ground, progress is moving fast. The main container terminal, built to handle the world’s largest ships, is set to open this year with a capacity of 1.5 million twenty-foot equivalent units.

In June last year, the port received its first fully automated, remotely operated cranes, the first in the Kingdom, in what officials called a milestone for Saudi ports.

In a recent update, NEOM said the port is already operating at full capacity as a Red Sea hub, handling multiple cargo types, supported by advanced infrastructure and high operational standards. It links trade flows from the Americas, Europe and Egypt to Gulf and Iraqi markets.

A new logistics map

Abdullah Abdulrahim Almeer, an assistant professor at King Fahd University of Petroleum and Minerals and a member of the Saudi Economic Association, said NEOM’s location gives it an edge.

Unlike major Saudi ports clustered on the western coast or in the Gulf, NEOM sits at the far northwest, where Europe, the Gulf and northern neighbors converge.

He said the port can act as a “bridge port,” linking the sea and land into a single system. Its proximity to the Suez Canal and its road links to Jordan, Iraq and Gulf states strengthen its role as a future logistics hub.

“NEOM Port is not just competing with Jeddah or Dammam, it is opening a new axis that reshapes regional logistics,” he said, citing tensions in routes such as the Strait of Hormuz.

Logistics consultant Nashmi Al-Harbi said the port complements, rather than competes with, existing Saudi ports. He added that its reliance on renewable energy boosts efficiency and positions it as a sustainability leader.

Faster, leaner supply chains

Almeer said the corridor can cut shipping times by more than half. Cargo that once took 10 to 12 days to reach Gulf destinations can arrive in 4 to 6 days by combining short-sea routes with fast overland transport.

The gains come not just from distance, but from reduced waiting times, simpler procedures and less congestion.

Al-Harbi said the corridor “revolutionizes supply chain efficiency,” offering a reliable alternative amid geopolitical uncertainty.

Both said time-sensitive goods stand to gain most, including fast-moving consumer goods, fresh and refrigerated food, pharmaceuticals, spare parts, high-value electronics and advanced construction materials.

From the trial phase to the real trade

Almeer said the port has moved beyond early testing and can now support real trade flows, though it is still scaling up. He expects it to become a major regional hub as expansion continues.

Al-Harbi said the port reached an advanced operational stage in 2026, with infrastructure capable of handling regional trade, supported by advanced digital systems, automated cranes and modern road links.

Almeer pointed to the involvement of major firms such as Bahri and DFDS as evidence that global players have shifted from watching to operating, though the port is still proving itself at scale.

Al-Harbi said the interest reflects a search for safer, more reliable routes amid disruptions to global supply chains.

Driving diversification

Almeer said the Public Investment Fund’s strategy puts logistics at the heart of economic diversification. NEOM Port and the corridor directly support that goal, linking Europe, Africa and East Asia to Gulf markets by land and sea.

Supporting measures include exemptions from storage fees for up to 60 days, allowing Gulf trucks to enter empty or loaded, and launching regional storage and redistribution initiatives.

He said the impact on Tabuk will be significant, creating direct jobs in port operations and indirect roles in transport, warehousing and logistics, while opening the door for new industrial zones.

NEOM’s location near Iraq, Jordan and Kuwait strengthens its role as a regional gateway, he said, boosting Tabuk’s appeal and placing it at the center of regional and global trade.

Business

Azour to Asharq Al-Awsat: Saudi Arabia Has Strong Financial Buffers to Confront War Impact

Dr. Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund, speaks at the IMF, World Bank spring meetings. (IMF)
Dr. Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund, speaks at the IMF, World Bank spring meetings. (IMF)
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Azour to Asharq Al-Awsat: Saudi Arabia Has Strong Financial Buffers to Confront War Impact

Dr. Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund, speaks at the IMF, World Bank spring meetings. (IMF)
Dr. Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund, speaks at the IMF, World Bank spring meetings. (IMF)

“This is a multidimensional shock.” That is how Dr. Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund, summed up the bleak outlook gripping the region, describing the current war as an earthquake not seen in geopolitics and economics for five decades.

He said it has struck one of the world’s most vital economic corridors, shaking energy markets, disrupting trade routes and eroding business confidence, creating uncertainty that demands unconventional responses.

He added that Saudi Arabia has, in recent years, built strong financial institutions and diversified its income, giving it room to maneuver despite the pressure.

The IMF has cut its 2026 growth forecasts for Gulf states in its World Economic Outlook, citing the fallout from the Iran war. The impact varies sharply by country, depending on exposure to energy markets and trade, and the availability of alternatives to secure oil exports.

Among oil exporters hit by the conflict, five of eight economies are now expected to contract in 2026. Qatar faces the steepest downgrade due to extensive infrastructure damage. Oman, by contrast, sees only a slight downgrade, as its maritime outlet lies entirely outside the Strait of Hormuz, and it is expected to benefit from stronger fiscal and current account balances driven by higher oil prices.

Saudi Arabia stands out, with growth projected at about 3.1% this year, supported by alternative oil pipelines.

Speaking at a virtual discussion on the IMF’s latest assessment of the war’s impact on Middle East and North Africa economies, Azour said this exceptional shock, hitting the core of global trade and energy routes, is being met in Saudi Arabia with institutional resilience.

He said the Kingdom has built strong financial “buffers” through income diversification and institutional strengthening, giving it the fiscal space to advance Vision 2030 and shield its mega projects from regional turbulence.

Strong financial institutions

Responding to a question from Asharq Al-Awsat, Azour said Saudi Arabia has anchored its fiscal policy to a medium-term framework.

He described the Kingdom’s “reordering of project priorities” as a healthy and normal response to shifting global conditions, aimed at preserving Vision 2030’s core goals of economic diversification and job creation.

He added that strong financial institutions give the Kingdom the flexibility to absorb disruptions to trade routes.

Cracks in energy infrastructure

Azour said the shock has centered on hydrocarbons, with data showing a sudden halt in the flow of more than 12 million barrels a day of oil and gas. The disruption has spread beyond energy to the real economy, with tourism across most Gulf Cooperation Council countries declining noticeably.

Business confidence has weakened, reflected in widening credit spreads and currency volatility. The Egyptian pound has been among the clearest indicators of these sharp aftershocks.

‘Baseline scenario’

Looking ahead, Azour outlined a “baseline scenario” in which hostilities end by midyear. Even then, he said, markets should expect oil prices to rise by $10 a barrel. He warned of a more severe scenario in which oil averages $130 for a prolonged period, turning the crisis from a supply shock into a heavy burden on oil importers such as Jordan and Tunisia, triggering a sharp contraction in their current accounts.

Interconnected regional interests

Azour underscored the region’s deep interdependence, saying countries such as Pakistan, Egypt and Jordan rely structurally on Gulf states not only for energy, but for financial lifelines.

Any disruption in the Gulf quickly translates into falling remittances, which account for about 5% of GDP in some countries, and a halt in capital flows. A prolonged war, he warned, could turn the energy crisis into a food security disaster for vulnerable states due to rising fertilizer and basic commodity costs.

‘Keep your powder dry’

In his strongest remarks, Azour said governments’ room for maneuver is shrinking under the weight of pandemic-era debt. He cited advice from a “Gulf finance minister” to “keep your powder dry,” urging countries to use their limited buffers with agility.

He stressed the need for precise policy calibration, replacing broad subsidies with targeted cash support for vulnerable groups, maintaining monetary tightening to curb inflation, and recognizing exchange rate flexibility as the key shield against severe shocks.

Azour said the crisis, despite its severity, should mark a turning point, forcing a fundamental rethink of the region’s long-term economic strategies.

Heavy reliance on single trade and energy routes, he said, has become an existential risk in a world of fast-moving geopolitical volatility. The post-war phase should not mean a return to old models, but a shift toward building a “resilience economy.”

He said this shift requires parallel action, accelerating diversification of production to reduce exposure to energy price shocks, while deepening regional economic integration, which the crisis has shown is not just a political choice, but a shared economic safeguard.

He also highlighted the need to strengthen food and water security through innovation, to ensure livelihoods are not left vulnerable to disruptions in global supply chains.

In a message to policymakers, Azour said lasting financial stability depends not only on crisis management, but on embedding structural shock absorbers within economic systems, enabling countries to absorb major shocks and move toward more sustainable and inclusive growth, away from the volatility of geopolitics and prolonged conflict.

Business

Alternative Routes for Middle East Oil and Gas Due to Hormuz Disruption

The sun rises behind tankers anchored in the Strait of Hormuz off the coast of Qeshm Island, Iran, Saturday, April 18, 2026. (AP)
The sun rises behind tankers anchored in the Strait of Hormuz off the coast of Qeshm Island, Iran, Saturday, April 18, 2026. (AP)
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Alternative Routes for Middle East Oil and Gas Due to Hormuz Disruption

The sun rises behind tankers anchored in the Strait of Hormuz off the coast of Qeshm Island, Iran, Saturday, April 18, 2026. (AP)
The sun rises behind tankers anchored in the Strait of Hormuz off the coast of Qeshm Island, Iran, Saturday, April 18, 2026. (AP)

The US-Israeli war with Iran has disrupted shipping through ‌the Strait of Hormuz, the world's most important oil chokepoint, exposing the Middle East's limited alternatives for exporting its hydrocarbons.

The International Energy Agency (IEA) called it the largest supply disruption on record, bigger than the oil shocks of the 1970s and the loss of Russian pipeline gas after Moscow's invasion of Ukraine combined.

These are the existing and possible alternative oil and gas export bypasses of the Strait of Hormuz:

EXISTING PIPELINES:

EAST–WEST PIPELINE (SAUDI ARABIA)

Saudi Arabia's 1,200-km East–West pipeline can transport up to 7 million barrels per day (bpd) of crude to the Red Sea port of Yanbu, with effective exports estimated at around 4.5 million bpd, depending on tanker and jetty availability.

From Yanbu, shipments can travel ‌to Europe via ‌the Suez Canal or south via the Bab el-Mandeb ‌strait ⁠to reach Asia, ⁠a route carrying security risks from Yemen's Houthi militants, who have attacked tankers during the Gaza war.

HABSHAN–FUJAIRAH PIPELINE (UAE)

The Abu Dhabi Crude Oil Pipeline (ADCOP) runs from Abu Dhabi's Habshan onshore fields to Fujairah on the Gulf of Oman, outside Hormuz. Operated by ADNOC and commissioned in 2012, the 360-km pipeline has capacity of about 1.5–1.8 million bpd. Oil loadings at Fujairah, however, have been affected by drone attacks since the Iran war started ⁠at the end of February.

KIRKUK-CEYHAN PIPELINE (IRAQ- TÜRKIYE)

Iraq's main northern export route ‌runs from Kirkuk to Türkiye's Mediterranean port of ‌Ceyhan via the Kurdistan region. The pipeline restarted last September after a 2-1/2-year shutdown following an ‌interim deal between Baghdad and the Kurdistan Regional Government. On March 17, Iraq began ‌pumping 170,000 bpd, with plans to reach 250,000 bpd, after Iraq's national oil company SOMO signed export contracts via Türkiye, Jordan and Syria.

GOREH-JASK PIPELINE

Iran may be able to utilize the Jask terminal, fed by the 1 million bpd Goreh-Jask pipeline, to bypass the Strait, the ‌IEA said in its latest oil market report. The construction of the terminal is not fully complete but a loading ⁠from Jask was tested ⁠in 2024, it said.

POSSIBLE ALTERNATIVE ROUTES:

IRAQ–OMAN PIPELINE Iraq said last September it was considering a pipeline from Basra to Oman’s port of Duqm on the Gulf of Oman.

The project remains at an early conceptual stage, with routes under study including an overland line via neighboring countries or a costly subsea pipeline.

IRAQ–JORDAN PIPELINE

The proposed 1 million bpd pipeline would ship crude from Basra to Jordan's Red Sea port of Aqaba, bypassing Hormuz.

First proposed in the 1980s and approved in principle in 2022, the project remains stalled by cost, security and political hurdles.

GULF–SEA OF OMAN CANAL

A canal bypassing Hormuz - similar to the Suez or Panama Canals - remains purely conceptual. A project to cut through the Hajar Mountains toward Fujairah would face extreme engineering challenges and could cost hundreds of billions of dollars.